Optimize the Role of Banking in MSME Empowerment by jokovicmatthew


									Optimize the Role of Banking in MSME Empowerment

BATAM-important issue in the development of Micro, Small And Medium Enterprises
(SMEs) is related to the volume of financing is still small for working capital and
investment. Meanwhile, to continue to encourage the development of SMEs in Batam,
the role of the government alone will not suffice. Pemko Batam therefore need support
from the banks to encourage SMEs in the city of Batam. This was conveyed by Vice-
Mayor of Batam, Rudi, SE, MM, in his speech when conducting a dialogue with the
banks about the partisanship of the SME Banking in Batam. Located in Batam Mayor's
Office conference room, the dialogue is in addition to presenting the state-owned banks
and private and other guarantee agencies, also invited the perpetrator MSMEs.

According to Rudy, favor bank will determine the growth potential of SMEs and sectors
are many grow in Batam, but has not been matched by an adequate volume of bank

"The shape of the SME bank alignments can be done in the form of development policy
and the Bank berbegai should proactively seek new cadre of business potential in areas
that will be grown, of course, with the supervision of Department of MSME PMPKUKM
as a builder," he explained.

Rudi explained that during this credit requirement for the proposed SME Bank is very
tight and is equivalent to large companies. Yet SMEs need simpler requirements and the
calculation of capital to credit risk is not too heavy.

The distribution of these loans is very important related to efforts to improve the
entrepreneurial Pemko or entrepreneurship. With the support of the business income of
households is expected to better that poverty and unemployment reduced. With the aim of
accelerating the development of real sector and the empowerment of Micro, Small and
Medium Enterprises, improving access to financing for SMEs and Cooperatives and
poverty reduction and expansion of employment opportunities in the city of Batam.

Johnson from Bank Indonesia responded, that is actually from the banking side itself also
requires the presence of SMEs as much as possible. And strongly supports the
development of Batam City UMKMdi. In terms of risk distribution, the banking sector to
finance SMEs tend to like as much because of the risk distribution becomes more diffuse.
So if there is a small part of the bankrupt SMEs, bermaslaah loan ratio (NPLs) incurred
by the bank kept small. Unlike the case if banks only finance several businesses in the
large corporate sector. In case of difficulty with this corporation, then the bank will bear a
much larger NPL thereby potentially threatening the existence of the bank. Yet, the Bank
expects banks alignments against the perpetrators of MSMEs in the areas of capital must
be supported by governments and regulators, in this case is Bank Indonesia.

On the occasion, Rudi also offered on the banks to cooperate in improving and
beautifying the existing public facilities in Batam. Pemko will fully support the
improvement and improvements made by the Bank on the road, green lane, bus stops or
other public facilities, of course, with contributions that can be given to the government
to build and beautify the appearance of the city of Batam.

Present at the occasion, representatives from Jewel Bank, Savings Bank Negara (BTN),
BTN Syariah, Bank Mandiri, Bank Syariah Mandiri, Panin Bank, Bank Negara Indonesia
(BNI), BNI Syariah Mega Bank, CIMB Niaga, Bank NISP, Bank International Indonesia
(BII), Bank Kesawan, Bank Central Asia (BCA) Bank Arta Graha, RB Syarikat Madani,
RB Partners Fund Success, RB Majestic Golden Kingdom, RB Prosperous Batam, RB
Partners Fund, Rural Artha Prima Perkasa and Bank Muamalat.

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