This paper aims to gain further understanding on what factors contribute such reliance to informal channels, such as family and friends. This study employs survey data obtained from 1,220 families across Greater Jakarta, Indonesia. Findings showed that people who do not rely on formal channel for deficit financing are 2.6 times more likely to rely on their family and friends, while people who do not rely on their family or friends are 7.1 times more likely to rely on formal financing options. This may indicate that formal financing channel may acts as direct substitute to informal channels of family and friends for low income families in Greater Jakarta area.