Changes to PNM Becoming an SME Bank: Risks to the Ecosystem and Support?

JAKARTA, KOMPAS.com - The government’s plan to transform PT Permodalan Nasional Madani (PNM) into a dedicated SME bank is considered by observers to risk disrupting the ecosystem that has been built previously. Without SME accompaniment, this step is seen as merely extending bureaucracy and potentially confusing SMEs. Economist and Professor at the Faculty of Economics and Business, University of Indonesia (UI), Budi Frensidy, views this as potentially complicating rather than simplifying, at least in the short term. “Separating PNM to the Ministry of Finance of the Republic of Indonesia risks breaking the chain of mentoring and financing that has been running, as well as adding layers of fiscal and operational coordination,” he told Kompas.com on Monday (13/4/2026). He added that efficiency can only be achieved if the institutional design is clear and does not add bureaucracy. “If not, this would instead be a step backward in orchestrating SMEs,” Budi concluded. This plan will also increase efficiency when there is truly a simplification of the distribution chain. “If it’s just transferring ownership without a clear operational design, the risk is adding bureaucracy and transition costs,” he said. He explained that the government recorded KUR distribution in the first semester of 2025 reaching Rp 131.84 trillion to 2.28 million debtors. Of that financing amount, 60 percent of the distribution went to the production sector. Doddy explained that the 2025 KUR target was raised to Rp 286.61 trillion and as of 15 November 2025, the realisation was already Rp 238.7 trillion or 83.2 percent. “This means the main problem for SMEs is not simply ‘lack of institutions’, but how to make the existing channels cheaper, faster, and on target,” he added. In PNM’s information disclosure as of July 2025, the Mekaar programme has reached 9.07 million customers and has 6,999 service offices. “Therefore, if moved to a new structure under the Ministry of Finance or SMV, there will be institutional transition costs, adjustments to risk governance, IT systems, business models, and supervision coordination,” he revealed. Economist from the Institute for Development of Economics and Finance (Indef), M Rizal Taufikurahman, assessed that changing PNM’s form does not touch the root of the KUR problem.