JAKARTA - Bank Indonesia (BI) has mandated that all banks in Indonesia allocate 20 percent of their credit to micro, small, and medium enterprises (MSMEs) gradually from 2015 to 2018 to stimulate economic growth.
"Starting next year, we require Indonesian banks to allocate five percent of their total credit to micro, small, and medium enterprises (MSMEs). The following year, it will increase to 10 percent, and by 2018, it will reach 20 percent," said Senior Deputy Governor of BI, Mirza Adityaswara, in Praya, the capital of Central Lombok Regency, West Nusa Tenggara (NTB), on Saturday.
He made this statement after participating in a tree-planting event at the Lombok International Airport area in Central Lombok Regency, alongside hundreds of BI employees and University of Mataram students who are scholarship recipients.
Mirza explained that while some Indonesian banks already disburse credit to MSMEs, the percentage varies. Some banks allocate up to 50 percent of their total credit, while others only allocate one percent.
Therefore, banks that do not comply with BI's policy will face sanctions. However, the sanctions will be implemented in stages.
The interest rates for loans provided by banks to MSMEs will continue to follow market rates, as bank funding also comes from the market.
He emphasized that BI encourages banks to increase MSME credit disbursement while adhering to the principle of prudence to prevent non-performing loans.
"So, it must be increased, but it must be done healthily. It's important to note that the non-performing loan rate for MSMEs is already above the national average," he said.
In addition to mandating banks to disburse MSME credit, the government has also encouraged banks to disburse People's Business Credit (KUR), where the credit is guaranteed by the government. However, the funding for KUR guarantees is still limited due to budget constraints.
"Therefore, we are pushing banks to allocate 20 percent of their total credit from 2015 to 2018," said Mirza.
Source: Antara