The banking sector channelled credits totalling Rp35.9 trillion (US$3.9bn) to small- and medium-enterprises (SMEs) in the January-July period this year, Deputy Governor of the central bank (Bank Indonesia-BI) Miranda Gultom said.
She said that the amount accounted for about 93.3 per cent of the target of Rp38.5 trillion for this year.
"The credits extended to SMEs performed well as the rate of its non-performing loans was only about 4.4 per cent," Miranda said.
Overall, the credits provided by the banking sector had a non-performing loan ratio of 6.1 per cent, the BI deputy governor pointed out.
She said credits channelled to SMEs bore relatively small risks yet were profitable.
The number of SME businesses was recorded at over 42 million units, employing 70 million people.
This accounted for 99.4 per cent of the nation's workforce, she said.
