The Financial Services Authority (OJK) held the National Forum of Financing Services and Microfinance 2025 (NFSM 2025) in Jakarta, (12/8/2025). This event aims to increase public understanding of the role of the financing sector and microfinance institutions (MFIs) in supporting government programs and promoting inclusive economic growth.
Chief Executive Officer of the Supervisor of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) Agusman explained that through this firstflagship activity, OJK seeks to expand access to financing, especially for the productive sector and UMKM, which are the backbone of the Indonesian economy.
"This effort is expected to provide ease of doing business, expand access to financing, and strengthen the role of the PVML sector in supporting national economic growth," Agusman said.
Leaders of industry associations also presented the significant contributions of each sector. Chairman of the Indonesian Finance Companies Association (APPI), Suwandi Wiranto, emphasized that the financing industry, better known as leasing, has made a significant contribution to the UMKM sector.
He explained that initially the industry focused on the productive sector such as leasing machinery and heavy equipment, over time there was a big shift to consumptive financing. However, he revealed that currently, the financing industry is again realizing the importance of the productive sector.
"Finally from 2000 to 2015, there was a shift in [APPI's] portfolio, where the consumptive portfolio for the purchase of vehicles, motorcycles and cars at that time we were still growing, we grew 25%-35% in the consumptive sector. The productive was still there, but slowly passed its position," he said at the National Forum of Financing Services and Microfinance 2025, Jakarta, (12/8/2025).
He added that as of May 2025, total financing disbursed to UMKM had reached IDR 170 trillion, or 35% of the total industry portfolio. This figure far exceeds the target set by the Financial Services Authority (OJK) of 10%.
Suwandi also highlighted how the financing industry is currently utilizing consumptive collateral, such as Motor Vehicle Owner's Books (BPKB), for UMKM working capital. This shows the industry's creativity in supporting small businesses. In addition, APPI is also expanding cooperation with various business associations, such as the Indonesian Employers Association (Apindo) and the Indonesian Young Entrepreneurs Association (Hipmi), to reach more UMKM.
The venture capital industry also plays a role, albeit with a different approach. Eddi Danusaputro, Chairman of the Indonesian Venture Capital and Startup Association (Amvesindo), explains that venture capital is unique in that it can provide equity participation.
"What might distinguish us (venture capital) from others is that we are probably the only ones who can make equity participation. The name is also venture capital, venture means that if we like a business partner(investee company), we don't just give credit, but we buy shares," he said at the National Forum of Financing Services and Microfinance 2025, Jakarta, (12/8/2025).
Eddi Danusaputro revealed that data as of April 2025 shows that total venture capital funding is still growing, with UMKM funding showing much higher growth compared to startups. He acknowledged the challenges in the startup sector, but he is optimistic that the industry will continue to grow with the support of programs that support the creative economy and talent development.
In addition, Chairman of the Indonesian Joint Funding Fintech Association (AFPI), Entjik S. Djafar, explained that online lending (pindar) seeks to reach people who have not been served by conventional financial institutions(unbanked and underserved). "We have a market that is unbanked and underserved," he said at the same event.
According to him, Pindar can provide unlimited access to digital loans, even reaching 3T (underdeveloped, frontier, and outermost) areas. He pointed out that AFPI had held Fintech Landing Days in Sorong, Papua, with the slogan "Pindar to the far east".
Based on AFPI's current data, 80% of borrowers are still in Java. However, AFPI continues to increase its reach outside Java. He added that the pindar industry is also targeting the micro, small and medium enterpriseUMKM) sector.
Furthermore, Entjik revealed that AFPI's research found a huge potential for the ultra-micro market, which is small traders who only need loans of Rp 2 million to Rp 6 million per month. This market potential is estimated to reach Rp 30 trillion every month.
The pawn industry also plays a vital role, especially for UMKM that need quick and easy financing. According to the Chairman of the Indonesian Pawn Company Association (PPGI), Damar Latri Setiawan, the potential of the UMKM market for the pawn industry is very large. He cited the 2021 Mckinsey survey which stated that of the 57 million UMKM, 45 million of them still need additional capital.
"The pawn industry can be a quick solution for UMKM to obtain financing, both for additional working capital when the economy is growing and to survive in difficult times," he said at the National Forum of Financing Services and Microfinance 2025, Jakarta (12/8/2025).
He also noted the increasingly strategic role of the pawn industry as a gold bank. According to him, the trend of saving gold among young people is increasing, creating a huge market opportunity.
"Our gold savings have 3.9 million customers," said Damar.
He added that this gold savings service allows people to save easily, even with a minimum capital of Rp 15,000, or by entrusting the gold they own.
In addition, the pawn industry can also be a source of working capital in the form of gold for craftsmen and gold factories. "They come to the gold bank to borrow gold, to be able to use it as working capital in gold," he explained. This shows that pawn services not only provide cash loans, but also play a role in the gold industry supply chain.
Meanwhile, Chairman of the Association of Microfinance Institutions (Aslindo), Burhan, also explained that microfinance institutions (MFIs) and sharia microfinance institutions (SMFIs) have a central role in responding to the financial needs of rural communities, especially for those who do not have access to conventional banking services(unbankable).
"If we talk about microfinance institutions (MFIs), we talk about non-bankable people, village communities, fishermen, vegetable traders, firewood seekers in the forest, and so on related to low-income communities," he explained at the same event, Jakarta, (12/8/2025).
Burhan explained that most MFI and LKMS clients, around 70%, are non-bankable and generally do not have collateral. He added that this is because collateral such as their Motor Vehicle Ownership Book (BPKB) is often already used for other loans. Therefore, MFIs and NFIs come up with collateral-free loans to serve low-income communities such as farmers, fishermen, vegetable traders, and firewood seekers.
In addition to channeling financing, MFIs and NFIs also manage deposits. He pointed out that MFIs accept deposits with a very small value, even starting from Rp 5,000 per week. Financing can also start from Rp 100,000 per week with affordable installments of Rp 10,000 per week. According to him, this system has proven to work well and has a positive impact on the community.
"One example in our place (Aslinddo), 239 villages in one district, we have accessed 40 villages. Our assets before transforming into microfinance institutions (MFIs) were only around 4-5 billion. In 2018 when we started the MFI, in 2024 our assets will be 50 billion," he said, exemplifying the growth of MFIs as a successful model.
According to him, this significant increase in assets is evidence of the success of the MFI model, which has now reached 40 villages out of 239 villages in one district. The MFI also has an office in each village to serve deposits and loans.
Aslindo notes that there are currently 240 MFIs across Indonesia, with 118 of them located in Central Java. These MFIs serve various sectors, ranging from cassava farmers to the cassava chip industry.
Burhan mentioned that MFIs do not only serve at the village level, but also at the kecamatan and kabupaten levels. There are even MFIs located within Islamic boarding schools.
