Jakarta – The government continues to strengthen the role of Micro, Small, and Medium Enterprises (UMKM) as the backbone of the national economy by reinforcing a banking system that is sound, stable, and secure. This effort is carried out in an integrated manner, involving national banks and deposit insurance institutions to ensure access to financing, the security of funds, and the sustainability of UMKM businesses across regions.
As a strategic partner of the government, Bank Mandiri has reaffirmed its commitment to supporting grassroots economic development and UMKM self-reliance. This support is delivered through a comprehensive approach that includes inclusive financing, business mentoring, and the development of a financial ecosystem that encourages UMKM to become more productive and competitive. Bank Mandiri President Director Riduan stated that strengthening UMKM is a key mandate for the company as an agent of development.
“UMKM are the main pillar supporting the people’s economy. Therefore, Bank Mandiri integrates inclusive financing, business assistance, and ecosystem strengthening into a unified approach to expand the business capacity of UMKM actors,” Riduan said.
To ensure that the benefits of economic development reach the village level, Bank Mandiri actively collaborates with Village-Owned Enterprises (BUMDES), Joint Village-Owned Enterprises (BUMDESMA), and village cooperatives through various national strategic programs. To date, Bank Mandiri has opened thousands of accounts for BUMDES, BUMDESMA, and the Red and White Village and Urban Ward Cooperatives, and has also extended credit to partners of the Free Nutritious Meal Program to support sound financial governance and smooth transactions at the local level.
Meanwhile, expanded access to UMKM financing is also supported by the optimization of digital financial services. Bank Mandiri’s UMKM loan disbursement from January to November 2025 reached Rp74.9 trillion, backed by proactive outreach strategies through Mandiri Agents, which have served millions of customers across various regions. In addition, the use of the Livin’ Merchant application as an integrated POS service has helped millions of business owners improve transaction efficiency and financial management.
UMKM strengthening is further reinforced by deposit security guarantees through the deposit insurance system. The Indonesia Deposit Insurance Corporation (LPS) has reaffirmed its commitment to maintaining banking stability so that UMKM can operate their businesses with a sense of security. LPS Secretary Jimmy Ardianto emphasized that trust in the banking system is key to UMKM sustainability.
“The security of bank deposits is the main foundation for UMKM actors. LPS is present to ensure that community business funds, including those of UMKM, are safe and protected,” Jimmy said.
LPS guarantees customer deposits of up to Rp2 billion per customer per bank, in both conventional and Islamic banks. As of November 2025, more than 99.9 percent of customer accounts were fully guaranteed by LPS, meaning that the vast majority of UMKM accounts fall within safe limits. According to Jimmy, banking stability is crucial, as disruptions in the financial sector can directly affect financing access and the resilience of UMKM businesses.
Through synergy among the government, the banking sector, and LPS, the strengthening of UMKM is expected to be more measurable and sustainable. A sound and secure banking system not only expands inclusive economic access, but also serves as a strong foundation for UMKM to grow, move up the value chain, and contribute more significantly to the national economy.