Overview  

During the course of the last year, small- and medium-scale enterprises (“SMEs”) contributed some IDR 8,400 trillion to Indonesia’s gross domestic product (“GDP”), which is approximately 60% of the country’s total GDP. Moreover, the SME sector has also helped to lower Indonesia’s unemployment rate by providing 97% of the total work opportunities available in 2018. However, in spite of these valuable contributions, SMEs are still greatly limited in terms of their being able to access funding from banks. Indeed, according to data provided by Bank Indonesia and the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”), at least 70% of Indonesia's 60 million SMEs have not been able to obtain any funding from banks.[1]