# Indonesian MSME financing and banking credit risks

> Developing situation record from CLSTR: https://clstr.news/situations/indonesian-msme-financing-and-banking-credit-risks
> Updated: 2026-10-29T04:10:14.000Z. Sources: 2. Developments: 2.

In October 2026, reports highlighted both specific credit risks within the Indonesian banking sector and the availability of government-backed micro-loans. Bank Mandiri faced high risks regarding loans to the Jhonlin Group, which were secured by pledged shares in PT Pradiksi Gunatama Tbk and PT Jhonlin Agro Raya Tbk. Concerns were raised about liquidity risks and a lack of transaction transparency regarding these shares.

Concurrently, several major banks, including Bank Syariah Indonesia, BNI, Mandiri, BRI, and BCA, were offering the Kredit Usaha Rakyat (KUR) program. This initiative provides financing for Micro, Small, and Medium Enterprises (MSMEs) to support working capital and production. These loans feature annual interest rates of approximately 6 percent, with repayment terms ranging from 12 to 60 months and limits reaching up to Rp500 million.

## Timeline

### 2026-10-29: Indonesia banks offer KUR micro-loans for MSMEs in 2026

Indonesian banks like BNI, Mandiri, BRI, and BCA are offering 2026 KUR micro-loans with 6 percent annual interest to support MSME business growth and capital needs.

2 sources. https://clstr.news/cluster/indonesia-banks-offer-kur-micro-loans-for-msmes-in-2026

### 2026-10-11: Indonesian banks face credit risks and MSME financing updates

Bank Mandiri faces liquidity risks from Jhonlin Group credit secured by PGUN and JARR shares, while Bank Syariah Indonesia offers KUR financing up to Rp500 million for MSMEs.

4 sources. https://clstr.news/cluster/indonesian-banks-face-credit-risks-and-msme-financing-updates

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Cite as: Indonesian MSME financing and banking credit risks. CLSTR, https://clstr.news/situations/indonesian-msme-financing-and-banking-credit-risks