Jakarta – PT Jaminan Kredit Indonesia (Jamkrindo) continues to promote financial literacy among micro, small, and medium enterprises (UMKM) in Eastern Indonesia. This initiative was highlighted through a workshop held in Palu, Central Sulawesi, on Tuesday, September 26, 2023. The workshop, titled "Managing Financial Statements for UMKM and Introduction to the UMKM Layak Platform", was held at the Integrated Business Service Center (PLUT) for Cooperatives and UMKM in Palu.
The event was attended by prominent figures including Sisliandy Ponulele, Head of the Cooperatives and UKM Office of Central Sulawesi, Irfan, Head of PLUT Central Sulawesi, Akbar Utami, Branch Manager of Jamkrindo Palu, Roy Baskoro, CEO of Layanan UMKM Naik Kelas (LUNAS), and the Business Relations Division II Team of Jamkrindo.
Anggit Murdiwibowo, Deputy Head of Institutional Relations Division II at Jamkrindo, explained that the workshop was attended by around 40 participants from Palu’s UMKM community. “This workshop is part of the management consultation and empowerment for UMKM under the UMKM Layak program in Eastern Indonesia,” said Anggit.
The workshop’s goal was to help participants understand their financial challenges and explore solutions while highlighting the benefits of effective financial management for business sustainability.
Anggit emphasized that financial management is critical for UMKM owners. He pointed out two main areas that UMKM owners should focus on: distinguishing between income and expenses, and separating needs from wants. “Active income includes wages and business profits, while passive income options such as stocks and bonds can be considered,” he added.
The workshop also discussed how to diagnose the financial health of UMKM. The first step is for UMKM owners to assess their financial health. Business owners must ensure their income exceeds their liabilities.
The second step encourages UMKM owners to be more mindful of their budget allocation, prioritizing essential needs over desires. With the right knowledge of these steps, UMKM owners will be able to make wiser financial decisions.
The workshop presented three key standards to assess whether a business’s financial health is in good condition:
- Savings should be at least 6 times the monthly expenses.
- Monthly debt repayments should not exceed 30% of business income.
- Consistent savings of at least 10% of business profits.
A business’s financial health is considered strong if all three standards are met. If only two are met, the business’s finances may be at risk, and if only one standard is met, the business is financially unhealthy.
Jamkrindo also emphasized the importance of digitizing financial records. Digital financial management tools will help UMKM owners streamline their transactions, even without understanding accounting basics.
Rorin, the owner of YuFrame and MyKorean, businesses in Parepare, shared that the workshop provided valuable insights. “The workshop was very beneficial because it not only covered financial management but also included Google Maps optimization from Jamkrindo. This will be very helpful for UMKM in Parepare to grow their businesses,” said Rorin.
This workshop is part of Jamkrindo’s ongoing initiative to support management consultation and UMKM empowerment under the UMKM Layak program in Eastern Indonesia. Following events in Kalimantan Timur, Jamkrindo will also host workshops in Parepare and Ambon.
About Jamkrindo
As a credit guarantee company under the Indonesia Financial Group (IFG), Jamkrindo provides a wide range of products, both program-based and non-program-based guarantees. These include People’s Business Credit (KUR) and working capital credit guarantees (KMK) under the National Economic Recovery Program (PEN). Non-program guarantees include general credit guarantees, micro-credit guarantees, construction and procurement credit guarantees, goods distribution guarantees, surety bonds, customs bonds, and supply chain financing (invoice financing).
Corporate Secretary of PT Jamkrindo
Aribowo
Email: [email protected]