UMKM Credit Disbursement Shows Continued Decline

Credit Contraction Deepens

The disbursement of credit to Micro, Small, and Medium Enterprises (UMKM) continued its downward trend, decreasing by 0.7% year-on-year to Rp1.493 trillion by November 2025. This decline follows a 0.1% year-on-year decrease in the previous month, indicating a persistent challenge in the UMKM sector. The contraction was observed across different segments, with the micro segment being the most affected, recording a significant decline of 5.5% year-on-year to Rp633.2 trillion.

Segment-wise Performance

The micro segment faced the most substantial decline, with credit disbursement falling to Rp633.2 trillion. This represents a deeper contraction compared to the 4.3% year-on-year decline observed in October 2025. The challenges faced by micro-enterprises in accessing credit are evident from these figures, highlighting the need for targeted support measures.