SEMARANG | The distribution of credit for micro, small, and medium enterprises (MSMEs) in the country is still relatively low. According to Bank Indonesia (BI) data as of April 2016, Indonesian MSMEs only received 18.12% of total credit distribution, amounting to Rp 745 trillion.
This statement was delivered by a member of the Board of Commissioners of the Financial Services Authority (OJK) for Education and Consumer Protection, Kusumaningtuti S. Soetiono, at the confirmation event of the Regional Financial Access Acceleration Team (TPAKD) of Central Java at Gradhika Bhakti Praja Hall last weekend.
According to Kusuma, the low credit distribution for MSMEs in the country is due to the financial literacy and inclusion levels of MSME actors being lower than the national average. “The financial literacy and inclusion levels of MSME actors are only 15.7% and 53.3%. These percentages are still below the national financial literacy and inclusion levels of 21.8% and 59.7%,” she explained.
Kusuma revealed that in Central Java, MSMEs only received credit distribution of Rp 81.5 trillion, the lowest in Java, compared to Rp 92 trillion in West Java and Rp 99 trillion in East Java. She stated that this is the starting point for mobilizing TPAKD to accelerate financial access or inclusion for economic actors, especially MSMEs.
Kusuma explained that TPAKD is a coordination forum among institutions and related stakeholders to accelerate financial access in order to drive regional economic growth and create a more prosperous society. “TPAKD Central Java has prepared a series of work programs, such as facilitating financial institution (LJK) financing for the MSME/startup sector, assisting MSMEs in entering the stock market, increasing the number of Laku Pandai (branchless banking for financial inclusion) agents in the regions, and implementing a savings culture movement for students,” she said.
Enhanced Assistance
Meanwhile, the Governor of Central Java, Ganjar Pranowo, emphasized that assistance for MSME actors in districts/cities must be increased. Ganjar instructed the Head of the Central Java Cooperatives and MSME Office, Gayatri Indah Cahyani, to immediately collect data on the number of MSMEs in 35 districts/cities to accelerate clustering.
Through assistance, MSME actors are encouraged to develop their businesses by applying for bank credit, whether from regional banks or BPR/BKK. “We will guide MSMEs in districts/cities. We need to take proactive steps. Call them, find out how many there are, ask about their difficulties, and slightly push them to take loans. The idea of ‘pushing’ them means that sometimes they only understand up to a certain point, but we can encourage them. If you can slightly increase your capital, your income will grow,” explained the Chief Advisor of TPAKD Central Java.
Ganjar gave an example of a conversation he had with chicken meat vendors at Johar Market when they visited the Governor’s Office a few days ago. They shared that they needed around Rp 800,000 to Rp 1 million in capital for daily sales. If they sold all their goods, they would earn a profit of about Rp 50,000 to Rp 100,000.
“I think that is remarkable. That amount of money is enough for independent living. I asked, if you received an additional Rp 1 million in capital, could you sell all your chicken meat stock? They said they could and were willing. But they asked, where should I get a loan? Then I told them, soon I will bring banks to that market. Whether it’s Bank Jateng or BPR-BKK, they should enter immediately, so their financial literacy improves and inclusion increases,” he explained.
Ganjar added that startup businesses, especially those run by PKK (Family Welfare Movement) mothers, should also be empowered. He believes that the financial management skills of these women in handling household finances are an advantage when applying for credit to develop their businesses. (Source: www.suaramerdeka.com)