Ministry Of Finance Disburses Rp18.6 Billion To 2,954 Ultra Micro Businesses In East Kalimantan

Ria Sartika    Saturday, April 04, 2026    Comment   

Ministry Of Finance Disburses Rp18.6 Billion To 2,954 Ultra Micro Businesses In East Kalimantan

Ministry of Finance disburses Rp18.6 billion in UMi funding to 2,954 micro businesses in East Kalimantan to boost growth and economic resilience in early 2026. (Illustration image)

Samarinda – The Ministry of Finance (Kemenkeu) continues to strengthen Indonesia’s grassroots economy by distributing Ultra Micro (UMi) financing. From January to February 2026, a total of Rp18.6 billion was channeled to 2,954 ultra micro business owners across East Kalimantan.

Head of the Regional Office of the Directorate General of Treasury (DJPb) East Kalimantan, Tjahjo Purnomo, said the program aims to enhance business capacity while encouraging economic independence among small entrepreneurs.

“The UMi program makes it easier for business owners to access additional capital, allowing them to improve product quality and increase income,” Tjahjo said in Samarinda on Sunday.

More Than Just Funding: Business Mentorship Included

Notably, the UMi program goes beyond financial assistance. Beneficiaries also receive mentoring, training, and business development support.

This approach helps micro-entrepreneurs scale up their businesses while maintaining strong loan repayment performance.

In short, UMi is not just about funding—it is a long-term empowerment strategy.

Trade Sector Dominates Funding Distribution

Out of the total Rp18.6 billion distributed, the trade sector absorbed the largest share:

• Micro trade sector: Rp17.84 billion (2,883 borrowers)

• Accommodation & food services: Rp200 million (20 businesses)

• Manufacturing sector: Rp180 million (15 businesses)

The dominance of the trade sector reflects its simple business model, fast cash flow, and relatively small capital requirements.

“High economic activity in small-scale businesses such as food stalls, agricultural trading, and home industries continues to drive demand for micro financing,” Tjahjo explained.

Kutai Kartanegara Records Highest Absorption

Among the 10 districts/cities in East Kalimantan, the highest UMi distribution was recorded in:

1. Kutai Kartanegara: Rp4.15 billion

2. Samarinda: Rp3.61 billion

3. Balikpapan: Rp3.43 billion

4. North Penajam Paser: Rp2.85 billion

5. Paser: Rp1.63 billion

Tjahjo noted that Kutai Kartanegara leads due to the large number of ultra micro businesses spread across villages and sub-districts.

Strengthening Local Economic Resilience

The UMi program plays a crucial role in strengthening local economies, especially for communities with limited access to formal banking services.

With easier access to capital and continuous mentorship, small businesses are expected to grow, increase income, and create new job opportunities.

FAQ

1. What is UMi financing?
UMi (Ultra Micro) financing is a government program designed to support small businesses that are not yet bankable.

2. How much funding was distributed in East Kalimantan?
A total of Rp18.6 billion during January–February 2026.

3. How many beneficiaries received the funding?
2,954 ultra micro business owners.

4. Is UMi only financial assistance?
No. It also includes training, mentoring, and business development programs.

5. Which sector received the most funding?
The micro trade sector.

SME Loans in Indonesia Keep Dropping – Here’s Why It Matters

Ria Sartika    Sunday, February 08, 2026    Comment   

SME Loans in Indonesia Keep Dropping – Here’s Why It Matters

SME Loans in Indonesia Keep Dropping – Here’s Why It Matters. (Illustration Image)

Hey, small business owners and finance watchers, here’s the scoop: SME loans in Indonesia are on a downslide, and it’s catching everyone’s attention. You’d think with all the government programs and bank schemes, getting a loan would be easier, right? Turns out, it’s not that simple.

Recent numbers show that in 2025, total loans for small and medium enterprises barely grew, and for some segments, they even dropped. Micro businesses saw a 4.7% decline, medium-sized businesses dropped by around 2%, and only small businesses edged up slightly by 6.8%. When you look at the bigger picture, the share of SME loans in total banking credit shrank from 20.5% in 2023 to 17.5% by the end of 2025. That’s a clear sign banks are tightening their lending.

So, what’s causing the slowdown? Banks are playing it safe. The risk of lending to SMEs is higher than before, and banks are more selective about who gets credit. It’s a bit like dating—if the risk seems too high, they swipe left. This means many businesses, especially smaller ones, struggle to get the cash they need to grow.

But don’t panic just yet. The central bank expects overall banking credit to grow 8–12% in 2026, thanks to a solid economic foundation. So opportunities for SMEs are still there—if you know how to play it smart.

For SME owners looking to grab some loans, here’s the game plan:

1. Keep your finances clean and transparent – banks love seeing a clear money trail.

2. Tap into government-backed programs – lower interest rates and guaranteed loans can make a huge difference.

3. Build a strong business reputation – a reliable track record makes you a safer bet for banks.

Even though SME lending is facing challenges, there’s still hope. Smart planning, understanding bank risk concerns, and leveraging government programs can keep your business moving forward. Loans can still be your fuel for expansion, hiring more people, and boosting Indonesia’s economy.

Bottom line: SME credit is down, but with the right strategy, your business can still thrive. Don’t let declining loan numbers scare you—think smarter, prepare better, and keep growing.