OJK rule makes banks plan MSME credit by sector and province from 2028

Implications for lenders

Banks and their lending partners may need data on every MSME loan by sector, type of use and province to support quarterly realisation reports from 2028. Missing an adjustment deadline costs IDR 1 million per working day up to IDR 30 million, but the larger compliance exposure is the possible ban on new products or expansion.

Implications

Facts

The rule: the Financial Services Authority (OJK) announced in a press release on 15 October 2026 that it had issued POJK 17/2026 on Rencana Bisnis Bank Umum, dated 30 September 2026, as an update of POJK 5/POJK.03/2016. Business plans must be realistic and risk-based, consistent with the bank's strategic plan, prepared by the board of directors and overseen by the board of commissioners; for Islamic banks and conventional banks with sharia units, the sharia supervisory board gives an opinion. OJK says the plan should be a strategic instrument that guides the bank, not only a reporting obligation, and should support risk-based, forward-looking supervision.

Contents: minimum contents include financial and ratio projections, a funding plan, a fund-provision plan, capital, equity investment and divestment plans, products, and the office network. According to Bisnis.com, Article 13 requires the credit plan to cover lending to related parties and core debtors, lending by business activity, economic sector, type of use and province, MSME credit broken down by sector, type of use and province, export-import credit, KUR (the subsidised People's Business Credit) and other lending that supports the national economy. Sharia business must also show the contract types used.

Timetable: plans are due by 30 November before the plan year; a single mid-year revision may be filed by 30 June when significant factors arise; realisation reports are quarterly, within one month after quarter-end, all through OJK's reporting system. The first plan under the new rule is for 2028, with the first realisation report for Q1 2028; 2027 plans and reports still follow POJK 5/POJK.03/2016.

Sanctions: a written reprimand comes first, followed where breaches continue by measures such as a ban on new products, a freeze of certain activities, a ban on expansion or a lower soundness rating. Late submission of an adjustment requested by OJK costs IDR 1 million per working day, capped at IDR 30 million. ¹ An adjustment that still does not meet OJK's request 14 working days after a written reprimand draws IDR 100 million. ² Directors, commissioners and sharia supervisory board members can be barred from being main parties of a financial institution.

Analysis

Time series: bank credit growth on Bank Indonesia's basis has quickened every month since March, reaching 13.65% in August, the same figure OJK reports (chart), while bank consumer credit grew only 5.0%. ³ The new rule does not set lending targets, but it makes each bank state in advance, sector by sector and province by province, how much MSME and KUR credit it intends to extend, and then report against that plan every quarter. That gives OJK a ready comparison between plan and outcome for the segments the government is pushing.

Compared with the old rule: POJK 5/POJK.03/2016 already required annual business plans; what the new rule spells out is the level of detail on credit, submission and evaluation through OJK's reporting system, and personal sanctions for board members. The fine amounts are small relative to bank balance sheets; the stronger levers are the non-monetary measures, such as a ban on new products or expansion, and the fit-and-proper consequences for directors.

Counterpoints and uncertainties

The press release gives no figures; the Article 13 details and fine amounts come from Bisnis.com's report on the regulation text, and the full text may add detail on consumer credit, which neither account mentions. Bisnis.com dates the regulation 21 September 2026, while OJK gives 30 September. The rule starts with 2028 plans, so it does not affect lending in 2026 or 2027, and planning detail does not by itself change banks' risk appetite for MSME borrowers.