Indonesia Economy and Industry

[Indos]

Perbanas Research: 90% of MSMEs Feel They Do Not Need Bank Loans


Andi Hidayat
Kamis, 18 Jun 2026





Jakarta – The Indonesian National Banking Association (Perbanas) has found that 90% of micro, small, and medium enterprises (MSMEs) feel they do not need to apply for bank loans. This is considered one of the main reasons behind the relatively low level of bank lending to the MSME sector.

Aviliani, Chair of Research and Economic & Banking Studies at Perbanas, stated that MSME lending is largely demand-driven. According to Perbanas research, around 90% of both formal and informal MSMEs have not applied for bank loans because they believe they do not need them.

“MSME lending is more demand-driven. Nearly 90% of formal and informal MSMEs do not apply for loans because they feel there is no need,” Aviliani said during the event Revitalizing MSME Business Models to Drive Credit Growth and the National Economy at the Four Seasons Hotel in Jakarta on Thursday (June 18, 2026).

According to the study, 88% of MSMEs operate using their own funds. Perbanas is therefore encouraging MSMEs to seek bank financing to support business expansion.

“What does this mean? It means they prefer to use their own capital. However, if we expect them to move up to the next level, they will certainly need to expand, and expansion inevitably requires bank financing,” she explained.

The findings are considered a structural challenge for Indonesia’s banking sector. While overall bank lending continues to grow positively, financing to MSMEs has been contracting.

Perbanas Chairman Hery Gunardi emphasized that the findings indicate that the issue is not a shortage of credit supply from banks, but rather low demand for loans from MSMEs. This is despite the fact that MSME loan approval rates are relatively high.

“The majority of MSME entrepreneurs have not applied for loans because they feel they do not yet need financing and continue to rely on their own capital. Meanwhile, when MSMEs do apply for loans, the approval rate is relatively high,” he said.

Key Figures​

• 90% of MSMEs do not apply for bank loans because they feel they do not need them.
• 88% of MSMEs rely on their own funds to run their businesses.
• Perbanas views low loan demand—not limited credit availability—as the main obstacle to MSME lending growth.
• Banks report relatively high approval rates for MSME loan applications.

Riset Perbanas: 90% UMKM Merasa Tak Perlu Kredit Bank

Perhimpunan Bank Nasional (Perbanas) mencatat 90% UMKM merasa belum perlu mengajukan kredit ke perbankan.

finance.detik.com

 

[Indos]

Government Debt Growth Drives Indonesia’s External Debt to $439.8B​

Ria Fortuna Wijaya
June 15, 2026 | 4:20 pm


A Bank Syariah Indonesia teller shows American banknotes in South Tangerang, Banten, on Wednesday, Jan. 21, 2026. (Antara Photo/Hafidz Mubarak)


Jakarta. Indonesia’s external debt rose to $439.8 billion in April, with higher government borrowing offsetting a continued decline in private-sector debt, while the country’s debt indicators remained within prudent levels.

The country’s external debt grew 1.9% year-on-year in April, accelerating from an annual growth of 1.0% in March, according to Bank Indonesia.

Government external debt reached $216.4 billion in April, rising 3.7% from a year earlier, slightly slower than the 3.8% growth recorded in March.

“The moderation was mainly driven by slower growth in outstanding external loans,” said Ramdan Denny Prakoso, executive director of communications at Bank Indonesia.

Foreign investors continued to record net inflows into government bonds, reflecting sustained confidence in Indonesia’s economic outlook, the central bank said.

As one of the government’s financing instruments for the state budget, external debt “continues to be directed toward supporting productive sectors while maintaining debt sustainability,” Ramdan said.

Health services and social activities accounted for the largest share of government external debt utilization at 22%, followed by public administration, defense, and mandatory social security at 20.5%, education services at 16.2%, construction at 11.5%, and transportation and warehousing at 8.5%.

Nearly all government external debt, or 99.99%, consisted of long-term obligations.

Private external debt continued to contract, although at a slower pace. Outstanding private external debt totaled $193.2 billion in April, down 0.7% year-on-year, following a 1.4% contraction in March.

The decline was primarily driven by financial corporations, whose external debt shrank 5.0% annually, improving from a 6.3% contraction in the previous month.

Manufacturing, financial and insurance services, electricity and gas supply, and mining remained the largest contributors to private external debt, accounting for 79.6% of the total. Long-term debt represented 75.8% of overall private external debt.

“Indonesia’s external debt structure remains healthy, supported by the prudent application of debt management principles,” Ramdan said.

The country’s external debt-to-GDP ratio remained stable at 29.6% in April, while long-term debt accounted for 84.5% of total external debt.

Bank Indonesia said it would continue coordinating with the government to monitor external debt developments and optimize the use of external financing to support sustainable economic growth while mitigating risks to macroeconomic stability.

https://jakartaglobe.id/business/government-debt-growth-drives-indonesias-external-debt-to-4398b