Jakarta - The presence of Small and Medium Enterprises (SMEs) in Indonesia essentially holds great potential in driving economic growth in the country. Unfortunately, many SME entrepreneurs still face capital limitations.
This opinion was conveyed by BPK Member 7, Aqsanul Qosasi, during a seminar organized by the Indonesian Young Caucus (KMI) in collaboration with Jamkrindo, themed "The Role of the Guarantee Industry in Empowering SMEs and Cooperatives," at Hotel Le Meridien, Jakarta, Tuesday (29/3/2016).
Aqsanul stated that to overcome the above constraints, the government has introduced a solution known as People's Business Credit (KUR).
"People's Business Credit or KUR is a program expected to empower SME entrepreneurs in the country," he said.
However, Achsanul regretted that the socialization of the program, initiated during President SBY’s administration, is still considered insufficient. He believes that many creative individuals in the country desperately need the program, which is now part of President Joko Widodo's (Jokowi) Nawacita vision.
"How can young and creative individuals who lack sufficient capital benefit from KUR? The program should be designed to reach the community," said the former member of Commission XI of the Indonesian House of Representatives (DPR RI).
Aqsanul also urged Jamkrindo, as a credit guarantee institution in Indonesia, to take part in empowering SME entrepreneurs nationwide.
"Jamkrindo is an insurance company that ensures small entrepreneurs can sustain their businesses. Jamkrindo must step in to guarantee entrepreneurs so that banks can offer more varied financial assistance," he requested.
If this is achieved, the Democratic Party politician continued, the role of the lending industry, as promoted by Jamkrindo, will be able to benefit SMEs more widely and evenly in the future.
"And hopefully, this can be expanded so that more people can access loans," he concluded.
The Role of Jamkrindo
Adding to Aqsanul Qosasi's statement, the Head of the Suretyship Business Division and Non-Bank Guarantee at Perum Jamkrindo, Amin Masudi, confirmed that most SME entrepreneurs in the country struggle with capital availability and access to funding due to stringent requirements that make it difficult for SMEs.
This, according to Amin, highlights the crucial role of Jamkrindo in providing access to sources of People's Business Credit loans.
"There are businesses that are viable but not bankable or ineligible for credit. That is why Jamkrindo has functioned since the 1970s to help SMEs access financing sources," he explained.
Furthermore, Amin ensured that Jamkrindo is no longer limited to KUR alone but is also promoting a super micro program that is believed to contribute to economic growth improvement.
"We are pushing this super micro program to support the economy and prevent economic downturns. We also provide contracts and guarantees, ensuring support for SME contractors," he said. (Source: beritabuana.co / Makruf)