JAKARTA, July 17 (Xinhua) -- The Indonesian government channeled 65 trillion rupiah (about 3.6 billion U.S. dollars) in microfinancing to 14.9 million micro, small and medium-sized enterprises (MSMEs) that previously lacked access to banking services between 2017 and June 2026, Finance Minister Purbaya Yudhi Sadewa said Thursday.
"More than 67 percent of MSMEs are microenterprises, contributing over 60 percent of gross domestic product and employing nearly 117 million people," Purbaya said.
The government has also lowered the interest rate on microloans from 22.5 percent to 8 percent to ease the financing burden on small business owners.
Purbaya said the 2026 state budget was designed to ensure that economic growth directly benefits communities by strengthening the MSME sector.
Indonesia has around 66.5 million MSMEs, with micro and ultra-micro enterprises among the most vulnerable to rising production costs, weakening demand and distribution disruptions. ■