Yogyakarta. The Yogyakarta Special Region (DIY) MSME Community protested at the Yogyakarta Regional People’s Representative Council (DPRD) demanding debt relief after the COVID-19 pandemic. Here’s how the Yogyakarta Special Region (DIY) DPRD responded.
The Chairman of the DIY DPRD, Nuryadi, confirmed that many entrepreneurs have been impacted by bank loans due to COVID-19.
“Previously, those affected by COVID-19 became like this , you know. We think, if COVID-19 hadn’t happened before, they would have been entrepreneurs,” said Nuryadi when met at the DIY DPRD, Malioboro, Yogyakarta City, Friday (26/9/2025).
But because we didn’t want that, it turned out that way, and the debts are still unpaid. So some have been threatened with sale by the bank,” he continued.
As a solution, Nuryadi stated that his party would help forward this demand to the central government. However, he emphasized that the DIY DPRD, as an institution, does not have much authority regarding this demand.
“We’ve sent letters to financial institutions to request a postponement in this situation. Second, we’re also taking the matter to Jakarta to see if there’s a legal framework that can resolve it. Third, we’re taking our friends to meet with the governor,” he explained.
“My only power is the power of this institution. I have no other power. Hopefully, this institution will be understood and made understandable to other parties,” he stressed.
Previously, Waljito, Head of Advocacy and Assistance for the DIY MSME Community, addressed the concerns of MSME members post-pandemic. He stated that due to the COVID-19 lockdown, a number of MSMEs have relied on bank financing.
“At that time, the government implemented restructuring by providing a three-month grace period for not paying installments. Then, it was extended, and the time, interest, fines, and principal were combined, and then combined. I don’t think that even that eased the burden on our MSME friends,” Waljito said when met on the sidelines of the demonstration on Friday (September 26, 2025).
Waljito stated that Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (PPSK Law) has not yet been implemented. He believes this will further burden MSMEs with regard to bank credit.
“The law, which was then interpreted as one that protects MSMEs, has apparently not been implemented by the government. We continue to be hounded by banks, which are supposed to be implementing the Banking Law as it should,” he said.
“In fact, we should be treated differently, because the inability to do so is not due to moral hazard, but rather to force majeure, the impact of COVID-19,” he explained.
Therefore, the DIY MSME community has expressed its demands regarding post-pandemic credit issues. Waljito stated that the approach to resolving credit issues should be persuasion and engagement, not intimidation.
“But the fact is, they’re currently actively conducting seizures and auctions. What’s most challenging for us is that the auctions are selling at unreasonable prices. Some are below the NJOP (Value-Based On-Demand),” he said.
“The debt was Rp 150 million, which ballooned to Rp 1.3 billion, and was auctioned for Rp 1.5 billion with assets worth Rp 3.5 billion,” said Waljito.
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