Loan price and size in the Indonesian retail microcredit market

Ganesha Bayu Murti, Rofikoh Rokhim, Viverita

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


This study analyse microcredit loan price and size in the Indonesian retail trade sub-sector using data from 2015. The aim is to find out if micro enterprises (MEs), as debtors, are harmed in microcredit transactions with Microfinance Institutions (MFIs). It was found that MEs are harmed if the percentage of the loan price increase exceeds that of the loan size, from the first to the second loan. The behaviour of MFIs is also investigated. This study uses the ME as a unit of analysis and examined 400 MEs from all provinces in Indonesia. A non-probabilistic sampling technique was used to identify the MEs while three types of MFIs were examined: cooperatives, Baitul Maal wat Tamwils (BMTs), and others. Most microcredit transactions, except ‘between MEs and MFIs’ in the ‘others’ group, did not have a loan price movement that was greater than that of their loan size. Consequently, most MEs were not harmed by microcredit transactions with MFIs.

Original languageEnglish
Pages (from-to)139-150
Number of pages12
JournalPertanika Journal of Social Sciences and Humanities
Issue numberAugust
Publication statusPublished - Aug 2018


  • Cooperatives
  • Indonesia
  • Loans
  • Microcredit


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