Koster urges fintech lenders to back Bali’s 440,000 MSMEs

Denpasar — Bali Governor Wayan Koster has urged online lending and other fintech financing platforms to channel more funds to productive local enterprises, including organic farmers, creative businesses rooted in Balinese culture, micro, small and medium enterprises (MSMEs), and young entrepreneurs. The appeal was delivered at the Fintech Lending Days (FLD) 2026 forum in Denpasar on Friday, 21 August 2026, where industry participants discussed how to serve Bali’s estimated 440,000 MSMEs as part of Indonesia’s digital financing ecosystem.

According to the Bali provincial government, Koster said financing providers should understand Bali’s business ecosystem and act as partners to entrepreneurs who are building and expanding their operations, rather than viewing the province only as a market. He specifically pushed for more funding to be directed to productive activities in sectors such as organic agriculture, culture-based creative industries, MSMEs and young business owners.

Fintech Lending Days 2026 was held at the Bali Sunset Road Convention Center with the theme “Advancing Indonesia’s Digital Financing Ecosystem.” The event was organised by the Indonesian Joint Funding Fintech Association (AFPI) in collaboration with CNBC Indonesia, and brought together regulators, government officials, lenders, investors, businesses and other stakeholders.

Push for productive financing and literacy

Koster welcomed the growth of financial technology, including online lending, saying it can simplify access to financial services for the public. He cautioned, however, that easier access must be accompanied by stronger financial literacy so that borrowers understand their rights, obligations and risks.

Nationally, the Financial Services Authority (OJK) has set a target for fintech lending to increase the share of funding going to productive sectors and MSMEs to around 40%–50% of outstanding financing by 2025–2026, under its roadmap for technology-based joint financing services. Recent data cited by OJK and industry sources indicate that lending to productive sectors remains roughly one-third of total fintech lending, with the majority still concentrated in consumption-oriented loans.

According to the governor, fintech lenders should therefore prioritise responsible, productive financing, with transparent products, appropriate use of funds and stronger consumer protection for borrowers in Bali. He signalled that the provincial administration is ready to work with regulators and industry to strengthen financial education for local entrepreneurs and communities, though detailed implementation plans have not been publicly outlined.

Scale of Bali’s MSME market

Bernadino Vega, a member of AFPI’s supervisory board, described Bali as having a strategic position in Indonesia’s digital financing industry. He said the province has around 440,000 MSMEs that need financing support to develop their businesses, making Bali an important market for fintech lenders.

Vega argued that the main challenge for online lending providers is not only the ability to supply funds, but also ensuring that MSMEs are effectively connected to the wider financial ecosystem with sound governance and responsible collection practices. His remarks aligned with calls from regulators and industry leaders at FLD 2026 for closer collaboration between fintech platforms and banks to strengthen the digital financing ecosystem.

Forum participants and follow-up

Fintech Lending Days 2026 was attended by key national and regional stakeholders, including Governor Wayan Koster, Deputy for Entrepreneurship at the Ministry of Cooperatives and SMEs Riza Damanik, Financial Services Authority executive supervisor Agusman, AFPI chair Entjik S. Djafar and Chair of Commission XI of the House of Representatives, Mukhamad Misbakhun.

Alongside panel discussions and networking sessions, the programme included business matching and the signing of memoranda of understanding between several online lending firms and MSME representatives, intended to support increased access to productive financing. Koster expressed appreciation for the forum and said he hoped it would generate concrete measures that benefit Bali’s MSMEs and local residents by expanding responsible, productive lending.

Sources

• Pemerintah Provinsi Bali – "Gubernur Koster Ingin Pengembangan Fintech Diimbangi Penguatan Literasi Keuangan"
• CNBC Indonesia – coverage and programme information on Fintech Lending Days 2026
• Adapundi – "Adapundi Ikuti Kegiatan Fintech Lending Days 2026"
• Media Indonesia – "Penguatan Ekosistem Pembiayaan Digital Dorong Sinergi Pindar dan Perbankan"
• OJK – Roadmap Pengembangan dan Penguatan Layanan Pendanaan Bersama Berbasis Teknologi Informasi (LPBBTI) 2023–2028 (English version)
• Kontan (Indonesian) – "Target Porsi Pembiayaan Produktif Fintech Lending 40%-50% hingga 2026"