Why Indonesian Micro-Small Scale Industry Did Not Borrow Money from Banks in 2024

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Akbar Ridwan 24/09/2025 15:34 WIB

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In 2024, many Indonesian micro-small scale Industry did not borrow money from banks due to lack of interest.

Reasons Why Micro-Small Scale Industry in Indonesia Did Not Borrow Money from Banks (2024)

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Reasons Why Micro-Small Scale Industry in Indonesia Did Not Borrow Money from Banks (2024)

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Based on data from the Central Bureau of Statistics (BPS), there were 4.41 million micro-small scale industries in Indonesia in 2024.

Of this number, only around 585,000 units (13%) utilized loans for business capital.

Among the micro-small scale industries using loans, 341,000 units (58%) borrowed from banks; while 243,000 units (42%) borrowed from non-bank institutions, such as cooperatives, individuals, or other entities.

Of the 243,000 micro-small scale industries that borrowed from non-bank institutions, the majority, or 62.7%, did not borrow from banks because they were not interested.

The following are the main reasons why micro-small scale industries did not borrow money from banks in 2024, according to BPS data:

* Not interested: 62.7%

* Difficult requirements: 11.9%

* Lack of collateral: 9.3%

* High-interest rates: 7.7%

* Don't know how: 4.2%

* Application rejected: 4.1%

BPS also found that in 2024, around 60% of the total number of micro-small scale industries in Indonesia experienced difficulties in running their businesses.

"Micro-small scale industries are not immune to various classic problems. As many as 42.91% face capital constraints," said BPS in its report.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Why Indonesian Micro-Small Scale Industry Did Not Borrow Money from Banks in 2024

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