Jakarta – In the structure of Indonesia’s economy, Micro, Small and Medium Enterprises and Cooperatives (UMKMK) have a position, role, and strategic potential because out of about 56.54 million business units in Indonesia, 99% are economic actors that fall into the UMKMK category with the following breakdown: micro enterprises 55.86 million (98.79%); small enterprises 629,418 (1.11%); and medium enterprises 48,997 (0.09%), with labor absorption reaching 97.2% and contributing about 56.5% of the formation of Gross Domestic Product in 2012.
In 2013 it was recorded that the number of UMKMK had reached 57.9 million business units, with the number of workers reaching 114.1 million people in 2013, an increase from 96.2 million people in 2009, where the largest part of all UMKMK activities consists of farmers, fishermen, livestock breeders, miners, craftsmen, traders, and providers of various services for the people covering the primary, secondary, and tertiary sectors. Based on the processed data, it is estimated that the UMKMK that have received credit facilities from the banking sector amount to only about 39.18% or roughly 22.15 million, while the remaining approximately 34.38 million UMKMK units have not been able to access capital from banks.
The factor of business capital is a very significant factor in driving the empowerment of UMKMK. Until now, the capital constraints faced by UMKMK include: the availability of financing institutions (availability) and the ability to access financing institutions (accessibility). Moreover, the limitations of UMKMK in accessing financing in general are caused by the still low trust of financing institutions towards UMKMK in terms of the ability to provide collateral and the availability of good administration in their business activities (not yet bankable).
Considering the potential and contribution of UMKMK which are quite dominant in driving national economic growth, the Republic of Indonesia Government on June 8, 2007, issued Presidential Instruction (Inpres) Number: 6 of 2007 concerning the Policy for Accelerating the Development of the Real Sector and the Empowerment of UMKMK. As a follow-up to that policy, in order to support the improvement of access to financing sources for UMKMK, a Guaranteed Credit program is needed.
Credit guarantee is a service that has been used by many countries and has proven to be the most effective instrument to support the business world and stimulate the economy. Especially for UMKMK, guarantees greatly help those who have productive businesses that are economically feasible but not yet bankable or who have constraints in terms of fulfilling collateral.
Through guarantee activities, not only can UMKMK access financing for business development which subsequently creates a multiplier effect for many economic activities, but there is also an opportunity to increase state tax revenue through the productive activities of UMKMK and those communities as well as Guarantee Companies, including dividend income. Furthermore, guarantees can also be directed to encourage the development of priority economic sectors such as agriculture in the broad sense, fisheries, infrastructure, housing, and others, which until now have not been equally reached by financing and credit from banks or other institutions. In turn, guarantees will also boost the role of banking intermediation, both conventional and sharia, as well as the growth of non-bank financial institutions in the country. In addition, in guarantee activities, guarantee companies can not only help UMKMK access financing, but they can also provide consultation services and management services for UMKMK.
The success of guarantees can perhaps be seen when the Government has successfully implemented the People’s Business Credit (KUR) program, where credit guarantee services become the complete choice of the Indonesian Government because of their pro-poor, pro-growth, and pro-job creation nature. Credit guarantee becomes the tool chosen by the Government to boost the distribution of credit collected from public funds, because with the existence of guarantees, UMKMK obtain ease in accessing business financing and develop positively.
Currently, the regulation regarding Guarantee Institutions still refers to the Presidential Regulation and the Financial Services Authority Regulation (POJK). Therefore, in order to strengthen the legal basis for the regulation of guarantee activities so that it becomes a reference in conducting guarantee business in the national economy, a legal umbrella in the form of a Guarantee Law that supports UMKMK for the advancement of the national economy is needed. That goal will be achieved if there is serious political will from the government and the House of Representatives.
In addition, the Guarantee Law is proposed so that the guarantee industry has a balanced level playing field compared to other industries and so that the guarantee industry can more optimally play a role in increasing the level of financial inclusiveness, considering that the current level of financial inclusiveness in Indonesia is only 20%. Meanwhile, credit guarantee activities are very potential in increasing financial inclusiveness, literacy, and education, considering that through guarantee activities the community will be helped to improve access to finance, credit, and interaction with financial institutions. Therefore, in order to increase the trust of financial institutions in guarantee institutions, the existence of a guarantee law is a necessity for the people, especially UMKMK, so it is not an exaggeration to say that guarantee activities are pro-people.
The existence of a Guarantee Law is very necessary as a solution for the empowerment of UMKMK, as well as part of the increased attention and access for the development of UMKMK, because the Guarantee Law:
Dapat memperkuat dasar hukum pelaksanaan kegiatan penjaminan.
It can strengthen the legal basis for the implementation of guarantee activities.
Dapat menyeimbangkan industri penjaminan dengan industri lainnya sehingga terjadi persaingan usaha yang sehat yang pada akhirnya menguntungkan bagi rakyat khususnya UMKMK.
It can balance the guarantee industry with other industries so that healthy business competition occurs which ultimately benefits the people, especially UMKMK.
Dapat mendorong inklusifitas keuangan, literasi dan edukasi keuangan.
It can promote financial inclusiveness, financial literacy, and financial education.
Dapat menimbulkan multiplier effect dalam berbagai kegiatan ekonomi dan meningkatkan perolehan pajak negara serta deviden.
It can generate a multiplier effect in various economic activities and increase state tax revenue as well as dividends.
Dapat memberikan jaminan kepastian kepada lembaga pembiayaan apabila terjadi risiko pembiayaan.
It can provide certainty guarantees to financing institutions in the event of financing risks.
Dapat meningkatkan pembiayaan di sektor-sektor strategis ekonomi domestik melalui pengurangan kesenjangan antara kepentingan lembaga pembiayaan dengan lembaga penjaminan.
It can increase financing in strategic sectors of the domestic economy by reducing the gap between the interests of financing institutions and guarantee institutions.
Dapat mengintegrasikan seluruh peraturan yang selama ini mengatur penjaminan.
It can integrate all the regulations that have so far governed guarantees.
That the current success of the guarantee industry as well as the success of the People’s Business Credit (KUR) Program is not the result of the insurance mechanism but rather the guarantee mechanism. In this case, the emergence of the Guarantee Law becomes very important because this legal basis will consolidate the role and function of guarantee activities, considering that many people still equate insurance with guarantee, even though the two have different characteristics and principles.
Actually, the Government through the Ministry of Cooperatives and SMEs and the Ministry of Finance had previously submitted academic papers and Draft Laws related to guarantee, wherein in 2006 the Ministry of Cooperatives and SMEs had submitted an Academic Paper and Draft Law on Guaranteeing Cooperative Loans and Micro, Small and Medium Enterprises but failed to enter the National Legislative Program (Prolegnas) in the DPR RI, and then in 2011 the Ministry of Finance, involving the Coordinating Ministry for Economic Affairs, the Ministry of Home Affairs, the Ministry of Cooperatives and SMEs, and Bank Indonesia, again submitted an Academic Paper and Draft Law on Guarantee Business, but still could not enter the Prolegnas in the DPR RI. Considering that now the Guarantee Draft Law has entered Prolegnas 2015, we hope that the Guarantee Draft Law in 2015 can be immediately completed considering that the Guarantee Draft Law is a product awaited by the Government and the people because of its pro-people nature and its advancement of the national economy.
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http://www.reportaserepublik.com/?p=2203
http://batamtoday.com/berita54178-Golkar-Dorong-Penyelesaian-Pembahasan-RUU-Penjaminan-dalam-Prolegnas-2015.html
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