Yogyakarta: Finance Minister Purbaya Yudhi Sadewa said the government, through the Government Investment Center (PIP), has disbursed IDR 65 trillion in financing to 14.9 million micro, small, and medium enterprises (MSMEs) since 2017.
“From 2017 to June 2026, the government has disbursed trillions of rupiah to millions of MSMEs that previously lacked access to bank financing,” he said at the Micro-Business (UMi) People’s Market at Alun-Alun Kidul, Yogyakarta, as reported by Antara on Friday, July 17, 2026.
Purbaya emphasized the importance of expanding access to financing for micro-businesses, given their significant role in the people’s economy.
“Micro-businesses account for more than 67 percent of all MSMEs, contributing to over 60 percent of Indonesia’s gross domestic product (GDP) and employing nearly 117 million workers,” he said.
Purbaya also highlighted the vulnerability of micro- and ultra-micro businesses to external economic pressures.
“When raw material prices rise, demand falls, distribution is disrupted, and micro-businesses come under pressure. What we aim to do is to provide a financial buffer for them,” he said.
The government has also lowered interest rates for the Micro-Business (UMi) loans from 22.5 percent to 8 percent, in a move aimed at alleviating financial burdens and improving access to financing. Purbaya expressed hope that the move would continue to support Indonesia’s positive economic performance in 2026.
(Jonathan Sianto)
Government Disburses IDR65 Trillion to 14.9 Million MSMEs
