Finance Minister Purbaya, PNM, and the Fate of SMEs
Finance Minister of the Republic of Indonesia, Purbaya Yudhi Sadewa, has proposed to the Danantara Indonesia Investment Management Agency that the Ministry of Finance (Kemenkeu) take over the management of PT Permodalan Nasional Madani (PNM), a move that warrants celebration. In particular, the minister wishes for PNM to be transformed into a bank specifically focused on the micro, small, and medium enterprises (MSME) sector.
This is because MSMEs have so far not received credit and financing commensurate with their number and contribution. The number of MSMEs in Indonesia currently stands at around 99.98 to 99.99 percent of the total businesses. Meanwhile, the large business sector accounts for only about 0.1 to 0.2 percent.
MSMEs’ contribution to the national gross domestic product (GDP) at the beginning of 2026 is 61 percent. In 2025, it reaches around 61 to 63 percent.
In the employment sector, MSMEs absorb around 97 percent of the total national workforce, or more than 120 million people. The total number of MSME actors reaches tens of millions. This is dominated by micro and ultra-micro enterprises.
Meanwhile, large businesses, numbering 0.1 to 0.2 percent, only manage to absorb around three percent of the total national workforce. Their contribution to the national GDP in 2025 is around 37 to 39 percent.
Despite their very small number, the large business sector receives a very large amount of credit and financing from the national banking world.
In February 2024, they received 81 percent of credit and financing. As for the MSME sector, according to then-President of the Republic of Indonesia Joko Widodo (Jokowi), it only received around 19 percent. Even though Bank Indonesia (BI) has set a target for credit and financing from the banking world to MSMEs, which must reach 30 percent by June 2024.
Looking at such data and facts, Jokowi has requested that strategic breakthroughs and regulatory improvements be made so that MSMEs can more easily access credit and financing. This way, it is hoped that the growth of the MSME sector can be driven even faster.