Players of Telematic Industry may Benefit from Small-And-Medium-Business & Cooperatives Payment Cheme

In the effort to seek for capital resources, players of the telematics industry particularly those of the small-and-medium category might benefit from the small-and medium category might benefit from the small-and-medium business and cooperatives payment scheme offered by banks or non-bank financial institutions.

Agus Muharram, Deputy of Financing, Ministry of Cooperatives and small-and-medium business, remarked to Business News in relation to grievances of the Business people of the telematics industry who were having problems in obtaining capital for their business.

One of the problem faced by players of the telematics industry in Indonesia was the limited access to credit facilities from financial institutions, particularly banks. As experienced by small-and-medium companies from the sectors, players of the telematics industry too were having difficulties in finding access to bank credit. This was on account of bank’s pre-requirements and procedures which was complicated and extremely bureaucratic, and inability of credit applicants to submit guarantee. In addition to that, the high bank interest imposed on borrowers were the main obstacle.

The truth was that not all players of the telematic industry were calcified as big enterprise and bankable. In terms of industrial category, only those of the hardware cluster like producers of computer hardware equipments, telecommunication network, multi media, equipments, musical instruments, video, film, photography, TV and digital radio were classified as micro, small and medium industry. Similarly Business lines like components and services, trading after sales service, consultant, were mostly microsmall-and medium business.

On small-and-medium business which were not business worth or bankable, might among others benefit from the services of among others: national program of people’s empowerment [PNPM] Mandiri; partnership and environmental partnership [PKBL], profit sparing of state owned enterprise, financing of Corporate Social Responsibility [SDR], Board of charity and zakat, [BAZIS] Rolling Fund by LKM, financing through empowerment programs through Social aid; gift, subsidy and financing by Provincial Governments and banks example: pawn by [KRISTA acheme].

Particularly for small-and medium business which were business worthy but not bankable, the following facilities were provided : financing by management of rolling fund by the State Minister of Cooperatives and Small-and medium Business [UKM], Financing or people’s Effort [KUR]; [Pawnshop and PNM] financing of venture capital through LKBB credit scheme and Financing of Subsidized Credit for Food Resilience.

Meanwhile for players of Small Business [UKM] who were business worthy and bankable, the financing program were : financing of KUMK SUP-005; Financing of Banking Plan for Small and-Medium Enterprise, Financing of linkage Program of bank with BPR/s and KSP/JJKS; financing of commercial credit and financing of credit for small business exporters.

Presently the number of small business which were not bankable reached around 35.49 million companies or approx. 70% of total micro business in Indonesia which numbered around 50.70 million companies. Self reliant micro business held the largest portion or around 98.80% of total business units in Indonesia.

Micro business which were business worthy but not as yet bankable were also numerous, i.e. potion reached 15.21 million or 30% of total micro business. Meanwhile small business units which belonged to this category were 208.9 thousand in number. Small business which were business worthy and bankable were posted at 23/8 thousand and the medium business reached 35.69 thousand units. Big business which were passable to go public were only 4.47 thosand or only 0.01% of total business in Indonesia.

In the field of transportation and communication the number of business units were posted at 3.2 million business units. The lines of business where small-and-medium business were prevelant were agriculture, livestock, forestry, and fishery i.e. 26.4 business units, followed by minery and excavation numbering 14.78 million business units.