Empowerment and Increasing Customer Income: PNM's Strategy to Protect Society from Loan Sharks

For many ultra-micro entrepreneurs, capital requirements often arise urgently to cover raw materials, orders, schooling, or pressing household needs. In such situations, quick and easy loan services often become the first choice. However, behind this convenience, many individuals face new burdens due to heavy repayment patterns and obligations that can threaten the sustainability of their businesses.

The phenomenon of loan sharks and informal lending practices remains a challenge for communities that lack full access to formal financial services. For unbankable groups, limitations in documentation, collateral, business scale, and financial literacy often act as barriers to obtaining safe and structured financing.

In response, PT Permodalan Nasional Madani (PNM), through its PNM Mekaar programme, serves as a more inclusive financing access point for underprivileged female ultra-micro entrepreneurs. PNM Mekaar provides collateral-free, group-based financing, accompanied by Weekly Group Meetings (PKM). Beyond providing capital, PNM also offers empowerment through training, business mentoring, financial management, and capacity building.

PNM has served over 22.9 million female customers with a service network spanning 58 branch offices and 6,165 districts across Indonesia. Throughout 2025, PNM has conducted 52,394 training sessions, reaching 1,853,170 participants. This data demonstrates that empowerment is achieved not only through access to finance but also through an ongoing mentoring process.

For customers, the presence of PNM Mekaar provides a space to learn business management and build independence. Group meetings serve not only as a place for repayments but also as a forum for mutual support, learning, and ensuring business continuity. Female entrepreneurs do not walk alone, as they are supported by both mentorship and a community.

Indriana, a PNM Mekaar customer from Depok who runs a fried snack business, emphasised the importance of being wise when choosing capital sources. She noted that PNM Mekaar provides not only capital but also business training and opportunities to expand markets through weekly meetings. “Women who are the economic pillars of their families must be smarter in managing businesses and obtaining capital. I choose PNM Mekaar,” said Indriana.

Indriana also mentioned that being a PNM Mekaar customer offers broader benefits, including financial, intellectual, and social capital to help develop her business.

Similarly, Selly, another PNM Mekaar customer from Depok who runs a salon and perfume business, stated that the programme helped her grow through financing and training. For her, access to financing accompanied by guidance provides a sense of security, as customers receive both capital and business direction.

Selly also experienced broader benefits for her family, ranging from meeting household needs and schooling her children to participating in local social activities. “Do not get trapped by loan sharks. If I want to avoid moneylenders, it is better to join PNM Mekaar, which has proven to advance my business and improve my family’s welfare,” she said.

This view aligns with the opinion of Professor Imam Widhiono from Jenderal Soedirman University, who believes that one of the most effective ways to distance society from loan sharks is by increasing their income. According to him, financing and mentoring are the right steps to ensure that people not only obtain capital but are also able to grow their businesses more healthily.

Through the Mekaar programme, PNM aims to provide a safer option for those with limited access to formal financial services. Financing does not stand alone as a mere loan; it serves as an entry point for the empowerment process.

PNM believes that when ultra-micro women gain access to appropriate financing and sustainable mentoring, they are not only able to expand their businesses but also secure their families’ futures. From small daily businesses, the courage to be independent grows, allowing them to improve their lives and move forward without resorting to difficult shortcuts.