BATAM, Indonesia (getnews) – Indonesia’s Parliament has confirmed a significant improvement in the management of the state’s massive micro-credit program. The Parliamentary Agency for State Financial Accountability (BAKN DPR RI) announced that PT Bank Negara Indonesia (BNI) has effectively addressed nearly all prior audit concerns regarding its disbursement of funds intended for small and medium enterprises (SMEs).
The announcement came after BAKN Vice Chairman Amin AK led an oversight visit to Batam, Riau Islands, Monday (Dec 1, 2025), to follow up on audit findings by the Supreme Audit Agency (BPK) covering the 2021–2024 period.
The $650 Million Challenge and the Conflict of Competence
The visit focused on the Kredit Usaha Rakyat (KUR), or State-Backed Micro-Credit Program. Amin AK highlighted the immense scale of the program, noting that BNI, as a state-owned bank, received an allocation of IDR 10 trillion (approximately US$650 million) in 2024 alone.
The complexity arose because KUR is not BNI’s core business model, which previously led to several BPK findings.
“Because BNI is a state bank entrusted by the government to distribute KUR funds, we expect the bank to manage it as if it were a core part of its operations,” said Amin AK.
90% of Audit Issues Deemed Resolved
Despite the initial challenges, the Vice Chairman expressed high confidence that the bank has successfully implemented internal reforms based on prior recommendations.
“If the audit process is carried out in 2026, I believe that 90 percent of those findings will no longer exist because all of the BPK’s recommendations have been followed up meticulously,” Amin AK stated, signaling a major win for governance and accountability.
Why SME Financing Matters to the Global Economy
The parliamentary oversight underscores the strategic importance of this financing. Amin AK pointed out that Indonesia’s SME sector is the backbone of its economy, crucial for global resilience:
- Scale: There are 65 million SME units in Indonesia.
- Employment: They absorb 97 percent of the national workforce.
- GDP: They contribute over 60 percent to the country’s Gross Domestic Product (GDP).
Amin AK concluded that the government must continue to show strong support for SMEs through programs like KUR, ensuring they are empowered and can remain resilient against global economic crises.
