This vital role that MSMEs have been playing in the Indonesian economic development was acknowledged by the Government of Indonesia. In the same time, the existence of numerous micro and small enterprises intermixed with housing development poses additional problems in the enforcement and monitoring of the treatment and discharge of wastes. Yet, most of MSMEs face difficulties in managing their resources to acquire efficiency in their production, both through addressing the depletion of resources and inefficiency of equipment. Thus, encouraging those kinds of enterprises to implement cleaner production (reduce, reuse, recycle and recover) is one solution that needs to be promoted. The experience of using environmental soft loan programmes in promoting cleaner production investments in Indonesia has been positive. The analysis demonstrates that such incentive schemes can speed up investment in MSMEs in technologies that reduce the use of resources. At the same time they gradually build capacity in participating banks in assessing environmental risks and developing a new type of a client base. The schemes have successfully evolved into revolving facilities and their sustainability in continuing to support cleaner production financing in Indonesia in ensured. Some banks have realised the financial benefits of cleaner production, but overall in the current cost structure of most MSMEs in Indonesia, some level of support from the government and donors is still necessary to stimulate the market for environmental investments. The paper will describe environmental credit schemes developed by the Indonesian Government as efforts in addressing financial obstacles of MSMEs for Environmental Investment.