Proposal to Transform PNM into SME Bank Could Expand Credit Access but Poses High Risks

Jakarta, Kompas.com - Senior Vice President of the Indonesian Banking Development Institute, Trioksa Siahaan, assesses that the plan to establish an SME bank could promote financial inclusion. The primary focus is on the micro and ultra-micro segments, which have long struggled to access formal financing. Trioksa states that the presence of an SME bank would open up credit access for business actors without collateral. This segment has high financing needs to develop their enterprises. “The most tangible benefit is to encourage inclusion and financing access to the micro and ultra-micro segments with conditions of no collateral and high potential risk,” Trioksa told Kompas.com on Wednesday (8/4/2026). Lending to high-risk segments could potentially increase problematic loans if not managed well. “It is necessary to pay attention to risk anticipation schemes so that it does not become a significant burden, because the hope is that this entity can remain sustainable,” he said. Credit insurance or integrated guarantee schemes are considered a viable solution. This approach aims to minimise potential losses. The characteristics of SME debtors are assessed to have a higher risk profile compared to commercial loans. Governance is also a key concern. Trioksa reminds that the SME bank must be free from political interests. “A special note is that this SME bank must be detached from political interests,” he stated. Balancing credit expansion and risk control is deemed essential to maintain sustainability.