Thursday, 6 November 2014

SMALL BUSINESS COUNCIL URGED TO ENHANCE CREDIT EXTENTION



The small Managing Body for Cooperatives and Micro-and-small and Medium Business [LPDB-KUMKM] set target for  channeling up by 47.22% compared to last year at Rp1.8 trillion. Based on data of LPDB-KUMKM, the rolling fund was given away to around 198,565 UMKM through 628 cooperative bodies. Attainment of fund pipelining was 80% of target.

Collectability of low performing fund [KDBB] would be down pressed to as low as possible level so as not exceed tolerance level of maximum 15% according to targeted business and budget plan 2014. Last year, channeling of fund was only Rp1.8 trillion, or 93.88% of planned budget close to Rp1.93 trillion. At he same time, LPDB managed to downsize KDBB to become 0.01% - 0,04%.

The Minister of Cooperatives of UKM Sjarifuddin Hasan stated in Jakarta on Tuesday [30/9] asked KUMKM players to maximize People’s Credit Program and the Council for the Rolling Fund as main facilities to access financing. Meaning there was no extra post to spend when trying to access financing to LPDB of KUR program. Hence KUMKM could increase their business capacity swiftly as the administrative process was simple.

By the discipline the fund returned could be used by the same players; many other UMKM needed financing but had no access to financing. He stated that if the opportunity of financing was not grabbed it would disadvantage players of the real sector or the Government. Many business line of different scale which be benefited by KUMKM.

Interest wise, the two financing system were equally light, especially to micro businessplayers who wished to access KUR financing with maximum credit of Rp20 million. the interest was only around 0.9% per month. LPDP interest to cooperatives [KSP] was 9.5% descended and retail interest of 6.5% alo descended.

Data of the Ministry of Cooperatives [Kemenkop] had that the rolling fund pipelined by LPDB-KUMKM had been absorbed to the amount of Rp1.59 trillion or 60/26% of the targeted Rp2.6 trillion. Sjarifuddin mentioned that to meet target of 2014, LPDB-KUMK had taken the necessary measures. Among them was acceleration of process for candidate partner who applied credit of Rp863.136 million.

Kemenkop and UKM had rescheduled technical visit in the period of September – November 2012 to candidate partners with total applied amount of Rp1.795 trillion. They also had allocated fund for cooperatives and UKM next year amounting to Rp2.75 trillion. As planned, pipelining of fund in 2015 was allocated for UMKM directly or indirectly through cooperatives and non cooperatives based on executing and channeling platform. The composition was set a 60% through cooperatives and 40% non cooperatives.

The Minister disclosed that LPDB-KUMKM today collaborated with various counterparts like: the Council of Prosecutors, BPK and KPK with the objective to smoothen collection process so NPL could be minimized. i.e. 15%. LPDB-KUMKM had shown their good performance and obtained Certificate as best BLU in managing special fund by the Ministry of Finance with score 76.33 and manage to excel over other BLU of the same type. Besides LPDB-KUMKM also had rating of 7.15 by KPK survey 2012 against integrity of public service. Such was in line with the Management’s commitment in attaining Good Government Governance [GGG] and corruption preventer. (SS)

Business New - October 3, 2014

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