JAKARTA | Bank Indonesia recorded that MSME credit growth was 8.3% year-on-year as of June 2016. Head of the MSME Development Department at Bank Indonesia, Yunita Resmi Sari, stated that the realization of MSME credit growth had slowed down.
According to her, the growth was lower than the national credit growth of 8.9%. The outstanding MSME credit was recorded at IDR 827.3 trillion in June 2016.
"It has indeed slightly slowed down, but this is also an indicator that applies to the banking sector. Credit slowdown is occurring in all sectors, both MSMEs and non-MSMEs. MSMEs also happen to be suppliers for large and medium-sized businesses," she said in Jakarta on Thursday, August 25, 2016.
Although lower than the industry average, Yunita continued, MSME credit growth as of June 2016 was already higher than the previous quarter. In the previous quarter, MSME credit growth was recorded at 6.2%.
Meanwhile, the market share of MSME credit also increased from 19.5% in Q1 2016 to 19.7% in Q2 2016. In terms of the number of credit recipients, there were only around 13 million MSME players, or about 22% of the total 50 million MSMEs in Indonesia.
Furthermore, Yunita stated that she believes MSME credit distribution will continue to record positive growth this year in line with the improving economic conditions.
She noted that at the very least, MSME credit distribution aligns with Bank Indonesia’s credit target of 7%–9%.
"It is still in line with BI’s projection of 7%–9%. That includes total credit, including MSME credit," said Yunita. (Source: Tempo.co.id)