The Influence of SME Funding and Non-Performing Financing on Indonesia's Economic Growth in The Period 2015-2022

This research aims to analyze the effect of MSME fund disbursement and non-performing financing
(NPF) on Indonesia's economic growth in the 2015-2022 period. The research method used is
quantitative with a descriptive approach. The data used comes from secondary data sources, such as the
financial statements of the Financial Services Authority (OJK) and the Central Bureau of Statistics. The
results showed that partially, the distribution of MSME funds had a positive and significant effect on
Indonesia's economic growth. This shows that financial support provided to MSMEs through the
distribution of funds makes an important contribution in encouraging better economic growth. However,
partially, non-performing financing (NPF) has an insignificant negative effect on economic growth.
Although the NPF problem may affect the financial sector, the results of this research show that its
impact on overall economic growth is not significant. Simultaneously, MSME disbursement and NPF
have a positive and significant influence on Indonesia's economic growth. This result confirms the
importance of good management of MSME disbursement and NPF control in supporting sustainable
economic growth. The implication of this research is that proper allocation of funds to MSMEs can
improve business efficiency and development. In addition, effective handling of the NPF problem can
minimize its negative impact on economic growth. Thus, policies that support good disbursement of
MSME funds and effective NPF control can contribute to stronger and more sustainable economic
growth in Indonesia.