# Indonesian banking sector credit expansion > Live situation record from CLSTR: https://clstr.news/situations/indonesian-banking-sector-credit-expansion > Updated: 2026-08-28T04:35:44.000Z. Sources: 8. Developments: 2. In Indonesia, banking and government entities are implementing various initiatives to expand credit access and support economic growth. In Southwest Papua, the provincial government and Bank Papua have partnered to increase People’s Business Credit (KUR) access for Micro, Small, and Medium Enterprises (MSMEs), specifically targeting indigenous Papuans. This collaboration includes the ‘Bankable MSME’ program, which provides guidance on business legality, financial reporting, and literacy to prepare local businesses for bank financing. On a broader scale, Bank SMBC Indonesia has partnered with the Asian Development Bank to strengthen trade and supply chain financing through a risk participation scheme. Meanwhile, Bank Indonesia has called for increased financing to the productive private sector to bolster national growth following a slowdown in the second quarter of 2026. As of July 2026, banking credit growth was reported at 13.58 percent year-on-year. ## Timeline ### 2026-08-28: Indonesia's banking sector expands financing to support economic growth Bank SMBC Indonesia and the ADB have partnered to expand supply chain financing, while Bank Indonesia urges increased private sector credit to drive national economic growth. 5 sources. https://clstr.news/cluster/indonesias-banking-sector-expands-financing-to-support-economic-growth ### 2026-08-26: Bank Papua and Southwest Papua government expand credit access for MSMEs Southwest Papua authorities and Bank Papua are working to expand KUR credit access and financial literacy for indigenous MSMEs to boost regional economic growth. 4 sources. https://clstr.news/cluster/bank-papua-and-southwest-papua-government-expand-credit-access-for-msmes --- Cite as: Indonesian banking sector credit expansion. CLSTR, https://clstr.news/situations/indonesian-banking-sector-credit-expansion