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Indonesia’s Central Bank Boosts Support for MSMEs Amidst Growth Challenges
Indonesia’s Micro, Small, and Medium Enterprises (MSMEs) face hurdles in accessing credit, adopting digital technologies, and expanding into export markets, according to recent data from Bank Indonesia (BI). While MSMEs contribute substantially to the national economy, representing 60% of Indonesia’s GDP and 15.7% of its exports [bank Indonesia], challenges remain in unlocking their full potential.
Credit Access and Digitalization Lag
As of november 2025, credit realization for MSMEs experienced a year-on-year decline of 0.64%. Furthermore, only 39.4% of MSMEs have integrated digital systems into their operations.This lack of digitalization hinders efficiency and competitiveness.
Addressing Foundational Weaknesses
BI recognizes that many MSMEs struggle with essential business practices. These include inadequate financial record-keeping, disorganized business data, and suboptimal payment systems. To address these issues, BI is implementing a strategic approach to help MS
