Purbaya Transforms PNM into an MSME Bank: Profile, History, and Interesting Facts

Bittime - The name PT Permodalan Nasional Madani or PNM suddenly became a hot topic after Finance Minister Purbaya Yudhi Sadewa revealed his grand plan in a working meeting with Commission XI of the House of Representatives on Monday, April 6, 2026.

Purbaya wants to take over PNM from BPI Danantara and transform it into a dedicated MSME bank under the auspices of the Ministry of Finance.

Which makes this plan even more serious: Purbaya admitted that he had received full approval from President Prabowo Subianto.

Key Takeaways

• PNM will be transformed into a special bank for MSMEs by Finance Minister Purbaya with the blessing of President Prabowo to launch the KUR.

• PNM is the largest women's financing institution in the world with 14.4 million customers & Rp68.2 trillion in financing.

• PNM made global history as the first issuer of Orange Bonds and social sukuk in Indonesia and the world.

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But what exactly is PNM? What is its history, and how large was it before transforming into Indonesia's largest MSME bank? Let's dissect it.

What is PNM?

PNM is a subsidiary of Bank Rakyat Indonesia (BRI) specializing in microfinance. Unlike conventional banks, PNM is specifically designed to reach communities previously untouched by formal financial institutions. Its primary target is underprivileged women in remote areas of the archipelago.

Currently, PNM has two flagship products:

- PNM Together(Fostering a Prosperous Family Economy): a group-based financing program specifically for women ultra-micro entrepreneurs.

- ULaMM(Micro Capital Service Unit): direct financing services for MSMEs who need larger capital.

As of November 2024, PNM had 62 branch offices, 626 ULaMM service offices, and 3,972 Mekaar unit offices spread throughout Indonesia.

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PNM's Long History: From the 1998 Crisis to a Global Giant

PNM was founded on June 1, 1999, exactly a year after the 1997–1998 monetary crisis devastated the Indonesian economy.

At that time, the MSME sector was the hardest hit. The government needed a specialized institution that could revitalize the people's economy. Thus, PNM was born.

Initially, PNM operated with only six branches in Bandung, Surabaya, Makassar, Semarang, Medan, and Padang. Its activities were conducted indirectly through commercial banks, rural banks (BPR), and cooperatives. By 2000, PNM even managed the legacy credit program of Bank Indonesia's Liquidity Credit (KLBI).

The big jump happened in 2015:

- PNM launches Mekaar product.

- Two initial offices were opened in Cilincing and Penjaringan, Jakarta.

- In the same year, the government injected Rp. 1 trillion in state capital.

Since then, PNM's growth has been unstoppable.

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Large Scale of PNM Institutions Today

PNM Achievement Figures:

- In 2024, the number of active PNM customers will reach around 14.4 million people.

- Total financing disbursed reached IDR 68.2 trillion.

- By August 2025, PNM had served 13.3 million female customers in 36 provinces.

This achievement makes PNM the largest women's financing institution in the world, surpassing the legendary Grameen Bank from Bangladesh.

Mekaar's distribution has grown tremendously, from just IDR 4.2 trillion in 2017 to IDR 68.2 trillion in 2024.

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Historic Achievement: The World's First Orange Bonds

In 2025, PNM made history again:

- PNM became the first financial institution in Indonesia to issue Orange Bonds (socially oriented bonds and sukuk).

- The total issuance value reached IDR 16 trillion, consisting of IDR 6 trillion in bonds and IDR 10 trillion in sukuk.

- The Sukuk issued by PNM is the first in the world.

This instrument received the highest rating from Pefindo (idAAA) and won the *Best Islamic Finance & Best Social Orange Bonds in Asia 2025* award in Singapore in February 2026.

Purbaya's Plan: Why Does PNM Need to Become an MSME Bank?

Despite its brilliant achievements, Purbaya believes that PNM is not yet optimal because it is still under the profit-oriented BRI.

- "BRI's design is for profit, not to help the people," he stressed.

- By becoming an MSME bank under the Ministry of Finance, PNM will be able to distribute KUR (People's Business Credit) more massively.

Purbaya's vision is very ambitious:

- If the Ministry of Finance injects IDR 40 trillion per year for five years, PNM's capital will reach IDR 200 trillion, equivalent to a large bank.

- He will also build an integrated ecosystem: mentoring, training, marketing, and credit guarantees.

The Financial Services Authority (OJK) fully supports this plan. Negotiations with Danantara are currently ongoing.

Conclusion

PNM is more than just another financial institution. Born out of crisis, it has grown into a global women's financing giant, and is now poised to transform into a national MSME bank. Whatever its future form, PNM's role in the Indonesian economy will become increasingly strategic.

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FAQ

What is the Minister of Finance's plan for PNM?

Taking over PNM from Danantara and transforming it into a dedicated MSME bank under the Ministry of Finance to streamline KUR.

Who are PNM's main target customers?

Underprivileged women and ultra-micro entrepreneurs in remote areas of Indonesia.

How big is PNM currently?

14.4 million customers, total financing of IDR 68.2 trillion, and is the largest women's financing institution in the world.

What are PNM Orange Bonds?

The first socially oriented bonds and sukuk in Indonesia and the world, worth Rp16 trillion, won international awards.

Why does PNM want to be separated from BRI?

Because BRI is profit-oriented, while PNM needs flexibility to carry out its social mission/public service obligation.