Since early 2022, the President of the Republic of Indonesia Joko Widodo has emphasized to every financial sector to facilitate access to capital for Micro, Small and Medium Enterprises (MSMEs). The difficulty of access to capital that continues to be experienced by MSMEs, has made the President continue to force the financial sector to take part in advancing MSMEs.
So far, MSMEs have always been charged with advancing the economy. However, the burdens and problems experienced by MSMEs in moving up a grade are also still a big obstacle. According to the Financial Services Authority (OJK), currently as many as 74 percent of MSMEs still have difficulty accessing capital, which causes a decrease in the scale of production and distribution.
Due to the difficulty of access to banking, many MSMEs are now looking for alternatives to fintech or financial technology companies rather than banking. Secretary General of the Indonesian MSME Association (AKUMINDO) Eddy Misero said, although the interest and risks that could occur were very large compared to banking, they were very easy to apply for. MSMEs are immune to interest and risk. What MSMEs need is easy access to capital so that production can continue.
Matters related to finance, like capital, are classic problems in Indonesia. For banks and other large financial institutions, MSMEs are not a bright prospect to be given capital. High business risks and sometimes no collateral, makes banks and financial institutions need to think twice.
But there is no need to worry, there are many other options that MSMEs might be able to use to access capital.
Apply for Capital Loans to Cooperatives
Nowadays, cooperatives may sound foreign, the government is trying and encouraging the Ministry of Cooperatives and SMEs to make cooperatives close to the community. Therefore, savings and loans, which are one of the cooperative products, are made easier to access.
The terms and conditions when borrowing from a cooperative are not as heavy as borrowing from a bank. Of course there are stages and requirements that need to be met before being approved, usually each cooperative differs in determining the terms and conditions.
The loan procedure is much easier and faster, the disbursement process is fast, some cooperatives provide unsecured loans, and very low interest rates are the advantages of cooperatives. However, sometimes there are differences in loan limits, differences in collateral requests, and requirements that need to be provided.
Cooperatives are much easier than banks, and this option is one that can make it easier for you to access capital.
Loans from the Government
Ultra Micro (UMi) is one of the government's products to provide capital assistance to MSMEs. This fund is sourced from the State Budget which is specifically channeled to MSMEs, and is managed by the Ministry of Finance. In this case, UMi does not only distribute capital in the form of credit, but several other facilities, such as training support and mentoring are also provided.
At present, the government offers many products to MSMEs, not only UMI, but UMi is indeed one of the products that is being accessed by many MSMEs. Therefore, this product can be one of your choices in terms of easy access to capital.
Dharma Bhakti Astra Foundation (YDBA)
The Dharma Bhakti Astra Foundation (YDBA) has a vision to always be the best in fostering and developing MSMEs in Indonesia. YDBA does not necessarily provide direct access to capital, but YDBA helps shape and guide MSMEs towards independence.
Various MSME coaching programs such as training, mentoring, marketing facilitation and financing facilitation are prepared according to the current industry needs. In this case the financing facility is not provided in the form of money, but instead encourages MSMEs to be 'bankable' and obtain business capital loan channels from various other parties so they can upgrade.
For that, YDBA can be one of the strongest options in your solution to overcome capital difficulties. YDBA does not allow MSMEs to be given capital and then develop on their own, but YDBA also encourages, guides, and advances so that MSMEs can upgrade.
Do you want to join YDBA? Please send a DM to Instagram @ydba_astra to get information on the requirements and how to register.
Sources:
Dina Karina. Kompas.TV. 2022. Jokowi: Tidak Boleh Lagi Ada Cerita UMKM Susah Dapat Modal
Nicha Muslimawati. Kumparan.com. 2022. OJK Ungkap 3 Masalah UMKM: Sulit Akses Pasar hingga Terjerat Rentenir
Maybankfinance. 2021. 10 Tips Jitu Mendapatkan Modal Usaha untuk UMKM
Arrijal Rahman. Tempo.co. 2022. Sulit Dapat Modal, Pelaku UMKM: Bunga Mahal Juga Tabrak Aja
Tempo Publishing. 2020. Industri: Aneka Kiat Pemerintah Meningkatkan Industri Kecil Melalui UMKM. Jakarta: Tempo Publishing
Yayasan Dharma Bhakti Astra
