Indonesian banks face credit risks and MSME financing updates

Bank Mandiri is facing high risks regarding its credit to Jhonlin Group. The loans are secured by the pledging of shares in two companies owned by Andi Syamsuddin Arsyad, specifically PT Pradiksi Gunatama Tbk (PGUN) and PT Jhonlin Agro Raya Tbk (JARR). The collateral includes approximately 92.38% of PGUN shares and 86.64% of JARR shares. Concerns have been raised regarding the lack of transaction transparency and the liquidity risks associated with using shares that may be difficult to liquidate in the event of a default.

Separately, Bank Syariah Indonesia (BSI) is offering the 2026 People's Business Credit (KUR) program for Micro, Small, and Medium Enterprises (MSMEs). The program provides financing plafonds of up to Rp500 million to support productive needs such as working capital, operational costs, and production capacity. Repayment terms for the Rp500 million tier range from 12 to 60 months, with monthly installments varying based on the chosen tenor.