Abstract:

This study aimed to obtain information and knowledge based on data and facts from the effect of SBI interest rate and non-performing loans to investment  lending in SMEs in Indonesia. The method used is a form of time series from the years 2011-2015 using quantitative methods with descriptive analysis. This data  is presented every year on a monthly basis obtained from the website of Bank Indonesia (bi.go.id). This study uses the data time series regression model with Cochrane-Orcutt correction techniques. Based on the analysis of simultaneous, SBI interest rate and NPL significant effect on SME investment lending. Based on the results of partial analysis, the SBI interest rate has no effect on investment lending  in  the  SME  and  Non-Performing  Loans  significant  negative  effect on investment lending to the SMEs. Variations influence of two independent  variables can be determined based on the R2 value of 0.991465. So 99% of the variation SME loan portfolio affected by the SBI interest rate and the NPL and the rest influenced by other factors outside the research method.