News - MSMEs and Financial Inclusion Will Drive West Java's Growth by 2026

MSMEs and Financial Inclusion Will Drive West Java's Growth by 2026

Jan, 15 2026

AYOBANDUNG.ID -- As 2025 drew to a close, West Java demonstrated relatively solid economic resilience amidst global and national dynamics. The region's economic growth remained above the national average, with strong contributions from domestic consumption and investment.

Data from the Central Statistics Agency (BPS) shows that West Java maintained growth momentum at around 5.2 percent, an achievement that confirms the resilience of the region's economic structure and public confidence in the existing financial system.

The Head of the Financial Services Authority (OJK) for West Java Province, Darwisman, emphasized that macroeconomic indicators remain positive, reflected in banking intermediation supporting the national economy. The OJK, along with regional offices in Cirebon and Tasikmalaya, is strengthening supervision of financial services institutions to maintain system stability.

"As of November 2025, the network of financial services institutions in West Java includes two commercial banks, 121 rural banks (BPR), 12 rural banks (BPRS), 19 private pawnshops, 25 microfinance institutions (LKM/LKMS), four pension funds, one venture capital firm, one guarantee company, one fintech company, one regional securities company, and 32 investment galleries to expand capital market education for the public," said Darwisman.

This infrastructure is the backbone of financial inclusion in the region. For your information, total banking assets in West Java reached IDR 1,051.53 trillion in November 2025, a 3.14 percent increase compared to the previous year.

Third-party funds also grew 5.01 percent to IDR 736.06 trillion. This growth reflects public trust in the banking system and demonstrates that financial stability remains intact despite ongoing external pressures.

Credit distribution reflects shifting needs. Working capital loans fell -5.32 percent to IDR 329.93 trillion, while investment loans jumped 16.43 percent to IDR 228.01 trillion.

Consumer loans also rose 5.63 percent to IDR 489.27 trillion. This shift signals a new orientation toward long-term investment, which is expected to strengthen the production base and regional competitiveness.

"Access to financing for micro, small, and medium enterprises continues to be strengthened. As of November 2025, 470,064 businesses in West Java had utilized People's Business Credit (KUR) financing, with a total disbursement of IDR 25.97 trillion," said Darwisman.

MSMEs are the driving force of the regional economy and support economic resilience amidst global uncertainty. The KUR scheme in West Java is dominated by the micro sector, with a share of 64.56 percent.

This indicates that financing remains concentrated on small businesses, which are the backbone of the people's economy. However, the challenge ahead is how to encourage small businesses to upgrade to compete in a broader market.

Nationally, MSME credit reached IDR 1,496.07 trillion. West Java contributed IDR 186.66 trillion, or 12.49 percent, making it the second-largest recipient after East Java. This position underscores West Java's strategic role in the national economic landscape.

Despite these positive achievements, challenges remain. The financial literacy rate among the West Java community still needs to be improved. OJK data for 2025 shows that the national financial literacy index has only reached around 50 percent, with financial inclusion at around 85 percent. This gap has the potential to pose risks if not balanced by massive and continuous education.

Darwisman emphasized that the OJK will strengthen supervision to ensure that financial institutions not only grow but also maintain soundness and integrity. Risk-based supervision is a key strategy to anticipate potential fluctuations, especially in sectors vulnerable to changes in external conditions.

Improving financial literacy is a key agenda for 2026. Public education through investment galleries, capital market school programs, and digital campaigns is expected to increase public understanding of financial products.

With better literacy, the public can make wiser financial decisions and avoid illegal financial practices. Cross-sector collaboration is also key.

"Collaboration with stakeholders at the central and regional levels will be accelerated to optimize policy effectiveness, strengthen competitiveness, and ensure the benefits of economic development are widely felt by the people of West Java," said Darwisman.

This synergy is expected to strengthen the regional financial ecosystem. Therefore, digital transformation is a crucial momentum. Fintech and technology-based financial services are expected to expand financial access, especially for people in remote areas.

However, strict supervision is still needed to prevent illegal practices and maintain public trust in the digital financial system.

By strengthening supervision, expanding access, and improving financial literacy, the stability of West Java's financial system is expected to be maintained. This is crucial for maintaining public trust and supporting e-commerce growth.

[SOURCE]

West Java DPRD Regrets the Education Service for Not Responding to Investment Changes Related to the Provision of Vocational Schools

BANDUNGWETAN, AYOBANDUNG.COM - Member of Commission V of the West Java DPRD, Aceng Malki, regretted that the Education Department did not seem to be responding to changes in industry and investment by providing vocational schools in accordance with industry needs. He said that the availability of vocational school majors is currently still monotonous without paying attention to the conditions of industrial needs. "I see that vocational school majors in West Java are not linear with investment," said Aceng, Sunday 15 December 2024. He also gave an example in Karawang, which is one of the industrial centers, which is not accompanied by the provision of vocational school majors that suit needs. In this district, there is a lot of investment in both the automotive and other industries, but the availability of vocational school majors is actually a lot of management. As a result, many vocational school graduates are unable to enter work because their majors do not match the workforce needs in existing industries. "There should be planning resulting from coordination with Bappeda or SKPD related to investment. This planning is related to providing majors in vocational schools that are suitable for incoming investment. For example, if there is incoming investment in the automotive sector, then there must also be many automotive majors," he explained. Apart from that, vocational schools must also always update industrial technology so that their graduates can easily get jobs because their abilities are in line with industry needs. "Don't let companies that build factories using advanced technology, but Vocational Schools haven't updated the technology, end up with graduates still not being able to get jobs because they don't master the technology," he explained. According to Aceng, this condition actually occurs in West Java, so even though incoming investment is relatively high, labor absorption in the people of West Java is still low. "Because the skills of vocational school graduates do not match industry needs, in the end many of the workers accepted come from outside West Java. That's why the Education Department must reform vocational school majors so that they suit needs," he concluded.*** (SOURCE)

Dec, 18 2024

Om Zein is optimistic that PT MPS's investment will boost Purwakarta's economy

JABARNEWS | PURWAKARTA – The investment of PT Megatama Putra Sejahtera (PT MPS) has become a focus of attention for Purwakarta Regent Saepul Bahri Binzein, also known as Om Zein, following the signing of a cooperation agreement for the construction of the Campaka Interchange at KM 77+800 of the Cikopo–Palimanan (Cipali) Toll Road on Friday, January 30, 2026. Om Zein believes that PT MPS' investment in Purwakarta will have a significant impact on regional economic growth, particularly through the development of a new 350-hectare industrial area integrated with toll road access. "The 2025 investment target was IDR 11.2 trillion, and IDR 12.4 trillion has been realized. I am confident that with this industrial area (built by PT MPS), investment realization in 2026 will exceed IDR 12.4 trillion," said Om Zein in Cijunti Village, Campaka District, Friday (January 30, 2026). The signing of the Joint Memorandum of Understanding (MoU) and Cooperation Agreement (Agreement) between the Purwakarta Regency Government and PT Megatama Putra Sejahtera is part of the region's strategy to increase connectivity and attract investment. The Cipali Toll Road interchange is designed as the main access to the new industrial area in Purwakarta. According to Om Zein, the existence of the industrial area and supporting infrastructure not only strengthens Purwakarta's position as an investment destination in West Java but also provides a concrete solution to the employment problem. "Of the approximately 38,000 unemployed, we hope that around 35,000 can be absorbed through this industrial area," he emphasized. He emphasized the importance of transparency from companies, including investor PT MPS, in communicating workforce competency needs to village, sub-district, and community governments early on. "Tell the community, village heads, and sub-district heads what competencies the industry requires. From now on, the community can begin training and preparing themselves," said Om Zein. Om Zein also asked every investor entering Purwakarta to actively coordinate with the Manpower Office, sub-district heads, and village heads to ensure optimal absorption of local labor. "Give the people of Purwakarta, Campaka, and Cijunti opportunities to work according to their competencies. Never stop training our people," he said. Meanwhile, Djatikesumo Subagio, Director of PT Megatama Putra Sejahtera, called the construction of the Cipali Toll Interchange a strategic step to accelerate the growth of the industrial area and the regional economy. "This infrastructure will open wider access for economic growth and present new opportunities for investment, industry, logistics, and other productive sectors in Purwakarta and the surrounding area," said Djatikesumo. He emphasized PT MPS's commitment to carrying out its cooperation professionally, transparently, and responsibly as part of a collaboration between the business community and the local government. "We view collaboration between local governments and the business world as key to sustainable, measurable development that provides broad benefits to the community. We are committed to carrying out this role professionally, transparently, and responsibly," he concluded. [SOURCE]

Feb, 02 2026

West Java Provincial Government Targets 1 Million MSMEs to Have NIB by the End of 2024

Bisnis.com, BANDUNG - The head of the West Java Investment and One-Stop Integrated Service (DPMPTSP) and the heads of DPMPTSP 27 regencies and cities in West Java signed an Integrity Pact to help develop small and medium enterprises (SMEs), micro, and supermicro businesses. One part of the development included in the integrity pact is to facilitate the issuance of business identification numbers (NIB). With an easier NIB, small businesses can access legal funding through banks and cooperatives. "To reduce poverty and reduce unemployment, one of the most strategic and important sectors is small, micro, and even supermicro businesses so that their businesses are vibrant and can advance in class," said West Java Regional Secretary Herman Suryatman as quoted on Thursday (13/6/2024). According to him, the government's job is to create the atmosphere and create an ecosystem. "One of them is that we will support the legalization of businesses from SMEs, especially micro and supermicro ones. Yes, one of them is the Business Identification Number, or a business license for these low-risk ones," Herman added. Herman said, the realization of NIB issuance for SMEs in West Java until 2023 reached 1.4 million NIBs. Herman targets 2024 to issue 1 million NIBs, so that it can reach the end of 2024 to 2.4 million NIBs. "God willing, next year we will beat back 1.6 million so that we target 2025 all micro and supermicro small businesses have received legalization of business licenses," he added. According to him, the legality of MSME businesses will have a tremendous impact. "Because those who are micro, supermicro, they will be bankable later, they will start accessing formal financing funding, they will go to banks, to cooperatives, to Islamic banks, of course in West Java there are in all districts / cities," he added. The ease of access to legal financing, said Herman, is a solution so that small business actors are no longer trapped in illegal online loans, let alone emok banks or loan sharks. Herman emphasized that Pemdaprov Jabar together with regency and city governments will work together to facilitate the issuance of 1 million NIBs in 2024 to increase capacity, business quality, for SMEs, micro and supermicro businesses. As support, Pemdaprov Jabar is currently designing a credit scheme that is very cheap and easily accessible. "So that after the NIB, we facilitate the next financing scheme, we provide easy and cheap access, then the training will be designed in such a way with BLK (Job Training Center), of course with the central government working together," said the West Java Regional Secretary. West Java DPMPTSP Nining Yuliastiani stated that she is ready to support DPMPTSP in 27 regencies and cities to be able to promote the issuance of this NIB. "We will provide maximum support so that they can issue NIBs for SMEs," said Nining. (SOURCE)

Jun, 14 2024

West Java Investment Realization in 2023 Reaches IDR 210 Trillion!

Bisnis.com, BANDUNG -- West Java Province is again ranked first in investment realization in 2023 with a realized value of PMA and PMDN investment of IDR 210.6 trillion. Head of the West Java Investment and One-Stop Integrated Services Service (DPMPTSP), Nining Yuliastiani, said this figure reached 112%, exceeding the given target of IDR 188 trillion. "Investment realization in 2023 will increase by 20.64% compared to the previous year of IDR 174.58 trillion with total employment in the January-December 2023 period reaching 253,424 people," he said at the BEJA event, Gedung Sate, Bandung, Tuesday (30/1 /2024). Nining said that West Java is still a destination for investors to invest in Indonesia, this is shown by the value of West Java investment realization which is always ranked first nationally. "In 2023, the realization of foreign investment in West Java will reach IDR 122.6 trillion or around 16.5% of the realization of national PMA. Meanwhile, the realization of domestic investment will reach IDR 88 trillion (13% of the realization of national PMDN)," he explained. According to him, the housing, industrial & office areas sector is the sector with the largest investment realization in the PMDN category with an investment value of IDR 20.27 trillion. "The Transportation, Warehouse & Communication sector is the sector with the largest investment realization in the PMA category with an investment value of IDR 29.49 trillion," he said. Nining admitted that this realization was encouraging because the composition of PMA and PMDN throughout 2023 was not too far apart. Nining also emphasized that the role of MSEs as investment contributors is increasingly significant. "UMK reported that their investment realization reached 48%," he said. (SOURCE)

Jan, 31 2024

West Java Licensing and Investment Services Must Have a Direct Impact on Community Welfare

JABARTRUST.COM, BANDUNG, - In recent years, West Java has become a prima donna for foreign investment (PMA) and domestic investment (PMDN) companies, with investment realization achievements that consistently exceed the target set by the Investment Coordinating Board (BKPM). "We hope that the absorption of investment in West Java can improve human development indicators such as the unemployment rate, social inequality (gini ratio), and poverty alleviation," Herman Suryatman said during a briefing after a morning briefing and meeting with the ranks of the One-Stop Investment and Integrated Services Office (DPMPTSP) in Bandung City, Monday (10/6/2024). Regional Secretary of West Java Province, Herman Suryatman emphasized the importance of improving the performance of DPMPTSP which has been considered good to be even more optimal. "One thing we will create is how investment can have an impact on improving people's welfare," he said. Herman also acknowledged that West Java's licensing and investment services are among the best in Indonesia. However, he emphasized that these services must have a direct impact on the welfare of the community. "We can reduce unemployment, the Gini index, and poverty with licensing and investment tools," he added. In addition, Herman also wants to encourage the ease of business licenses for West Java residents who have micro and super micro businesses. "Wait for the play date. We will help, of course together with districts and cities," he said. The Head of West Java DPMPTSP, Nining Yuliastiani, expressed her readiness to answer the challenge. She is committed that the community welfare targeted by Herman can be realized through inclusive and sustainable investment. "We will realize community welfare with inclusive and sustainable investment," said Nining. With this encouragement, the West Java Provincial Government hopes to create a conducive investment climate while improving the quality of life of the community. Incoming investment is expected to not only increase economic growth, but also improve social welfare indicators in the province. (SOURCE)