Antara News·Indonesia·Thursday, October 29, 2026 at 05:27 PM UTC

Govt says MSME credit scheme supports 12 million jobs as of October

Translate

Rolandus Nampu, Uyu Liman

Badung, Bali (ANTARA) - The Indonesian government’s credit program for micro, small, and medium enterprises (MSMEs) has generated employment for approximately 12 million workers as of October.

Deputy for State-Owned Enterprise (SOE) Management and Business Development at the Coordinating Ministry for Economic Affairs Ferry Irawan said the estimate is based on the 4.2 million MSME borrowers recorded through October, with each enterprise employing an average of three to four workers.

"On average, each borrower employs three to four people. With 4.2 million borrowers recorded up to October, multiplying that figure yields roughly 12 million workers employed," Irawan stated here on Thursday (October 29).

According to Irawan, the program's impact extends well beyond job creation, helping raise household incomes and improving the overall welfare of business owners' families.

Stable employment enables community members to secure dependable livelihoods to cover household needs, fund their children's education, and invest in business expansion.

"From our on-the-ground monitoring, beneficiaries have been able to send their children to school, build or renovate homes, and grow their businesses," he said.

Irawan noted that the government continuously tracks revenue performance and business growth among beneficiaries to measure the tangible socio-economic dividends of the credit scheme.

Expanding financing access for MSMEs remains a top government priority given the sector's vital role as the backbone of the national economy.

To ensure broad reach, the government operates through the MSME Financing Committee, a cross-ministerial body bringing together the Coordinating Ministry for Economic Affairs, the Ministry of Finance, and relevant sector-specific ministries and agencies.

Irawan emphasized that because MSMEs span diverse industries, strong inter-agency coordination is essential to execute financing policies efficiently and reach an expansive base of entrepreneurs.

In addition to expanding financial inclusion, the government is steering loans toward strategic productive sectors, including labor-intensive industries, affordable housing, and agricultural machinery and equipment.

To refine credit policies, the government works with multilateral institutions such as the World Bank and the Asian Development Bank (ADB) on program evaluations, policy analyses, and strategic recommendations.

"Through these partnerships, we evaluate and enhance our public services. We aim to disburse loans faster and in larger volumes while maintaining portfolio quality and prudent governance," Irawan said.

He clarified that collaboration with the World Bank is strictly focused on technical policy recommendations for future program improvements, rather than direct loan financing.

Furthermore, Irawan highlighted targeted support for vulnerable women entrepreneurs. Evaluations of the super-micro credit segment demonstrate that women play an instrumental role in grassroots business, thus requiring dedicated capital support, mentorship, and empowerment initiatives.

Through continued policy refinement, the government expects the credit scheme to accelerate business scale-up, stimulate employment, improve people's welfare, and reinforce national economic resilience.

View the original on Antara News →

KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.