President Director of Perum Jamkrindo, Diding S. Anwar, welcomed a delegation from the Small and Medium Enterprise Agency and Japan Finance Corporation (SMEA & JFC) at Perum Jamkrindo's Head Office in Kemayoran, Jakarta, on Tuesday, January 24, 2017.
The visiting SMEA & JFC delegation consisted of Yuya Asai, Hiroyasu Kaburaki, and Dai Kinihara. Diding S. Anwar was accompanied by Nina Kurnia Dewi, Head of the MSME Rating & Management Consultation Division; Lusy Susanti, Head of the Guaranteed Program Business Division; Suwarsito, Head of the Bank Guarantee Business Division; Ahmad Albaasithu from the Suretyship and Non-Bank Guarantee Business Division; and Puspita Dewi from the Planning and Development Division.
The SMEA & JFC delegation visited Perum Jamkrindo to gain deeper insights into the financing conditions of micro, small, and medium enterprises, as well as cooperatives (MSMEs & Cooperatives) in Indonesia, particularly in terms of guarantees provided by Perum Jamkrindo.
Diding S. Anwar explained that accelerating national economic growth by enhancing the competitiveness of MSMEs and cooperatives is part of the government's key programs, as outlined in the sixth priority of the Nawacita (9 Priority Agendas).
"The government's policy direction is to encourage MSMEs to grow sustainably and expand their business scale," Diding explained to the Japanese delegates. He further elaborated that the national strategy includes increasing financial access and expanding financing schemes, such as:
a. Through the People’s Business Credit (KUR) program, guaranteed by Perum Jamkrindo, access is being expanded to include new entrepreneurs (e.g., families with fixed incomes can now access KUR, as well as KUR schemes for migrant workers and productive businesses in agriculture, processing industries, and services, with a minimum operational period of six months).
b. Regulatory monitoring of credit distribution to MSMEs, with a gradual target of at least 20% allocation by 2018.
Diding explained that MSME financing in Indonesia is generally classified into two categories: government-supported program loans and commercial loans. Currently, there are around 13 types of subsidized credit programs, including KUR through banks, loans provided by Public Service Agencies (BLU) under ministries, loans from the LPDB, and funding through state-owned enterprise partnership and community development programs (PKBL BUMN).
Meanwhile, commercial loans for MSMEs are distributed through banks and non-bank institutions, using commercial funding sources and disbursed without subsidies.
According to data from Bank Indonesia (BI), only about 18% of bank loans are allocated to MSMEs. To address this, the Financial Services Authority (OJK) has issued regulations allowing multifinance companies and venture capital firms to provide financing to MSMEs.
"Among MSMEs that have obtained bank loans, only about 8% are genuinely prepared in terms of financial capability and business skills. Therefore, empowerment programs through mentoring for MSMEs are highly necessary," said Diding.
In 2016, Perum Jamkrindo was assigned several roles related to MSME financing. First, the development of a national MSME database and rating system, an assignment from OJK supported by the Minister of State-Owned Enterprises (BUMN). Currently, a Business Plan is being formulated with a focus on legal, technical, and financial aspects. Second, to maintain commodity price stability, Jamkrindo was appointed as the Implementing Institution for the Warehouse Receipt System Guarantee (LPP SRG).
Following their visit to Perum Jamkrindo, the SMEA & JFC delegation, accompanied by Nina Kurnia Dewi, Head of the MSME Rating & Management Consultation Division, visited the OJK office. They were welcomed by Dumoly F. Pardede, Deputy Commissioner for Non-Bank Financial Industry Supervision at OJK.