On 28 August 2025, Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) issued POJK No. 19/2025* as an implementing regulation of Law No. 4 of 2023**. Effective from 2 September 2025, this regulation aims to enhance financing accessibility for Micro, Small, and Medium Enterprises (“MSME”) while maintaining prudential principles, positioning financial institutions and MSMEs as strategic partners in supporting national economic resilience.
POJK No. 19/2025 establishes a clear obligation for both banks and non-bank financial institutions (Lembaga Keuangan Non-Bank or “LKNB”) to expand MSME financing access. The obligation applies to commercial banks, rural banks, and a wide spectrum of LKNB — including financing companies, venture capital firms, microfinance institutions, peer-to-peer lending platforms, pawn companies, and other licensed entities, whether operating under conventional or sharia principles.
To facilitate easier access, the POJK No. 19/2025 introduces several key measures, including simplified application requirements, streamlined approval processes, and the ability for banks and LKNB to conduct write-offs or charge-offs of non-performing loans. Notably, POJK 19/2025 also allows the acceptance of intellectual property (“IP”) as collateral, subject to the existence of a credible IP valuation system and an established market for IP-based securities. This inclusion represents a forward-looking step toward recognising intangible assets as a viable form of security, particularly for innovation-driven MSMEs.
By formalising these measures, OJK seeks to remove long-standing procedural bottlenecks that have limited MSME access to financing. The regulation is expected to foster greater financial inclusion, promote innovation in credit assessment and collateral structures, and empower smaller businesses to contribute more effectively to Indonesia’s economic growth.
*OJK Regulation No. 19 of 2025 concerning Easy Access to Financing for Micro, Small, and Medium Enterprises
**Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector