OJK Implements Comprehensive Strategy to Enhance MSME Financing

Regulatory Reforms and Sharia Finance Development

The Financial Services Authority (OJK) has taken significant steps to boost credit disbursement to Micro, Small, and Medium Enterprises (MSMEs) through regulatory reforms and enhanced policy frameworks. As of November 2025, MSME credit growth remained in contraction at 0.64% year-on-year, prompting OJK to introduce new measures to stimulate lending.

Key Regulatory Initiatives

1. POJK No. 19/2025 Implementation: OJK has issued this new regulation to address key challenges in MSME lending, including infrastructure limitations and human resource constraints in the financial services industry. The regulation mandates banks and non-bank financial institutions to provide inclusive and affordable financing schemes tailored to MSME needs.

2. Establishment of Sharia Finance Development Committee (KPKS): To accelerate the growth of the sharia finance industry, OJK has formed KPKS. This committee aims to strengthen policy integration, enhance regulatory frameworks, and improve transparency in sharia financial services.

3. Creation of New Department for MSME and Sharia Finance: In line with the mandate of the Financial Sector Development and Strengthening Law (UU P2SK), OJK has established a dedicated department for MSME and sharia finance regulation and development. This department will be responsible for formulating policies, developing strategies, and ensuring the effective implementation of POJK No. 19/2025.

Implementation and Expected Outcomes

The new regulatory framework is expected to have a positive impact on MSME financing by making credit more accessible and affordable. The establishment of KPKS is particularly significant as it bridges the gap between sharia principles and regulatory requirements, ensuring that policies are both legally sound and compliant with Islamic law.

The comprehensive approach adopted by OJK demonstrates the authority's commitment to supporting MSME growth through financial sector development. By addressing both conventional and sharia financing needs, OJK aims to create a more inclusive and robust financial ecosystem that can better support Indonesia's economic development.