{
    "success": true,
    "data": {
        "id": 1663654,
        "msgid": "proposal-to-transform-pnm-into-sme-bank-could-expand-credit-access-but-poses-high-risks-1775634741",
        "date": "2026-04-08 14:02:12",
        "title": "Proposal to Transform PNM into SME Bank Could Expand Credit Access but Poses High Risks",
        "author": "Teuku Muhammad Valdy Arief",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Banking",
        "summary": "The proposal to convert PNM into a dedicated SME bank is seen as a potential driver for financial inclusion, particularly for micro and ultra-micro businesses lacking collateral and facing high financing needs. However, experts warn of elevated risks, including potential increases in non-performing loans if not managed properly, and stress the importance of integrated credit insurance schemes and political independence to ensure sustainability. Balancing credit expansion with robust risk controls will be crucial for the initiative's long-term success.",
        "content": "<p>Jakarta, Kompas.com - Senior Vice President of the Indonesian Banking\nDevelopment Institute, Trioksa Siahaan, assesses that the plan to\nestablish an SME bank could promote financial inclusion. The primary\nfocus is on the micro and ultra-micro segments, which have long\nstruggled to access formal financing. Trioksa states that the presence\nof an SME bank would open up credit access for business actors without\ncollateral. This segment has high financing needs to develop their\nenterprises. \u201cThe most tangible benefit is to encourage inclusion and\nfinancing access to the micro and ultra-micro segments with conditions\nof no collateral and high potential risk,\u201d Trioksa told Kompas.com on\nWednesday (8\/4\/2026). Lending to high-risk segments could potentially\nincrease problematic loans if not managed well. \u201cIt is necessary to pay\nattention to risk anticipation schemes so that it does not become a\nsignificant burden, because the hope is that this entity can remain\nsustainable,\u201d he said. Credit insurance or integrated guarantee schemes\nare considered a viable solution. This approach aims to minimise\npotential losses. The characteristics of SME debtors are assessed to\nhave a higher risk profile compared to commercial loans. Governance is\nalso a key concern. Trioksa reminds that the SME bank must be free from\npolitical interests. \u201cA special note is that this SME bank must be\ndetached from political interests,\u201d he stated. Balancing credit\nexpansion and risk control is deemed essential to maintain\nsustainability.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/proposal-to-transform-pnm-into-sme-bank-could-expand-credit-access-but-poses-high-risks-1775634741",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}