A Number of parties
consider that banks should have targeted micro, small and medium enterprises
(SMESs) because of its great potential with a total number of SMEs at 58 million
units and greatly contributed to the GDP. In addition, the SMEs sector absorbs
97.16% of the workforce in Indonesia. While, alignment of bank credit to SMEs
is only around 39.1 % or 22.15 million business units which utilize banking
access.
By considering the low access of
SMEs to banking, the Indonesia Employers Association (APINDO) proposed a loan
scheme with low interest, which is 5%, for small and medium industries (SMII)
who are having capital difficulty as an effort to improve performance in the
midst of a slowing economy. Nina Tursinah, head of SMEs Women Entrepreneurs,
Female Workers. Gender and Social of APINDO, in Jakarta, on Wednesday
(September 9), said that the proposal is expected to be one of the policy
packages to stimulate the performance of the industry. According to her, the
scheme of business credit (KUR) with interest rate of 12% (2015) is still
burdensome. for SME operators.
Nina said that her party had
proposed SME funding schemes to the governments with a loan scheme that eases
and the process for obtaining it is not difficult. He said that APINDO has a
meeting with a number of related parties. Based on the minutes of coordination
meeting between APINDO, the Director General of Small and Medium Industry
associations, it is proposed to have a venture capital scheme, where investors
think about the development of SMEs. It is targeted that there are 4,000 SME
debtors as members of associations who get a friendly loan scheme, which comes
from 40 associations of SMEs.
In the meeting, it is also agreed to
give interest rate maximum 5% per year which is below the interest rates of
Revolving Fund Management Institution (LPDP), with a loan ceiling between IDR
50 million and billion. Later, the guarantor is directed to Askrindo and Jamkrindo.
In additions, it is also stipulated an
application criteria for loan which is called “Fiendly”, i.e. the receiving
industries are required to perform the process of increasing value added, and
the debtors is a member that has been guaranteed by respective industry
association (associations become offtakers).
Mean while Executive Director of the
Institute for Development of Economic and finance (INDEF). Enny Sri Hartati,
highlighted that weak purchasing power has in impact on national productivity
decline. The cline mainly occurred in public demand for products of processing
industry. This resulted in an increasing number of industries, especially SMEs,
to have difficulty in business continuity.
He pointed out that in the midst of
these conditions, improvements of loan access to SMEs is considered very
important in the midst of global and national economic downturn, which is
generally still supported by the performance of large corporations. Loan
disbursement to the agriculture sector, trade, considered to drive economy, and
labor intensive industries is considered to drive economic activity of the
middle to lower class society and maintain purchasing power.
According to her, improvement of
access to credit for SME sector is part of an effort to answer criticism
against economic growth which is overly-based on large corporation, so it has a
multiplier impact on non-optimal equitable distributions, and when the global
economy weakened, the national economy immediately declined.
He said that total third party fund
(DPK) of national banks is around IDR 4,224 trillion as of June 2015, so it
should not only be allocated to large corporate sector. Credit portion to large
corporate sector amounted to 80%. It is sensitive to high GDP growth. Hence,
there should be allocation to sector that are sensitive to the expansion of
employment opportunities, which are played by SMEs. (E)
Business New - September 11, 2015
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