88 Percent of MSMEs Use Personal Funds Over Bank Loans, Research Reveals

Research by the National Banks Association (Perbanas) states that 88 percent of informal micro, small, and medium enterprise (MSME) actors prefer using personal funds over bank credit. Perbanas Head of Banking Economic Research and Studies Aviliani revealed that the use of personal funds for financing by informal MSMEs also affects credit distribution from banks. “Looking at the survey, they (MSMEs) prefer their own funds,” she said in Jakarta on Thursday, 18 June 2026. She explained that Perbanas research results over recent years indicate a slowdown in MSME credit growth, which even experienced contraction at one point. According to the Perbanas survey, the use of personal funds by MSME actors reached 88 percent. Meanwhile, 12 percent use external funds, comprising 49 percent from banks, 9 percent from friends or relatives, 32 percent from microfinance, and 11 percent from other sources. “For external funds, it is 12 percent, while personal funds account for 88 percent,” she stated. Aviliani added that bank and non-bank financing for formal MSMEs is also still relatively small, with existing data showing 62 percent use personal funds. “So it is not only banks; non-bank financing is also still small. We actually hope that the supply side is ready, but the demand side needs to be built up,” she said. Therefore, she noted, this is the main reason Perbanas launched the MSME Centre to help MSMEs upgrade across various lines. The MSME Centre itself serves as a collaboration platform to assist MSMEs in moving up a class through strengthening business capacity, increasing financing access, expanding market access, and accelerating business digitalisation.