Bank Indonesia tells banks to provide financing to SMEs

Bank Indonesia
Photo: Christopher Jeffery

Bank Indonesia (BI) has told banks to provide at least 20% of their total financing to small businesses by next June, as part of a new policy of channelling funding to the vulnerable sector.  

Banks will have to increase the financing to micro, small and medium enterprises (MSMEs) to 25% of their portfolios by June of 2023, and 30% by June of 2024, according to a notice published by BI on September 1.

The measure, dubbed the Macro-prudential Inclusive Financing Ratio (RPIM) ratio, recognises

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: