Central Java Has Become Increasingly Friendly For MSMEs Through Capital Assistance

JAKARTA - Micro, Small and Medium Enterprises (MSMEs) in Central Java continue to grow positively in line with the period of national economic recovery after the pandemic.

The Provincial Government together with the Regional Development Bank (BPD) or Bank Jateng proves its commitment to MSMEs through strengthening access to capital and the capacity of MSME actors through the distribution of People's Business Credit (KUR).

In 2022, the Central Java Provincial Government is known to distribute KUR of up to IDR 55.27 trillion. Not surprisingly, this area has been named the province that distributes KUR for the largest MSMEs in Indonesia.

Central Java's position in KUR distribution outperforms East Java and West Java, each with a distribution value of IDR 54.33 trillion and IDR 42.15 trillion.

Thanks to the maximum access to MSME financing, public optimism is getting stronger.

Based on data from the Central Java Provincial Government, the number of assisted MSMEs has continued to increase since 2018 by 143,738; in 2019 there were 161,458; in 2020 there were 167,391; in 2021 there were 173,431; and in 2022 there were 178,821.

MSMEs based on sectors in the 4th quarter of 2022, namely from the production sector as much as 64,115; agriculture as much as 28,373; trade as much as 65,391; and services as much as 20,942.

Meanwhile, the number of assisted MSME workers has reached 1,320,953 people. Up from 2018 as much as 1,043,320; in 2019 as many as 1,293,240; in 2020 as many as 1,298,007; in 2021 as many as 1,311,015; and in 2022 as many as 1,320,953.

The increase in fostered MSMEs was also followed by an increase in turnover and assets. For turnover, in 2018 it was IDR 55.69 trillion; in 2019 it was IDR 67.55 trillion; in 2020 it was IDR 67.08 trillion; in 2021 it was IDR 68.24 trillion; and 2022 it was IDR 68.48 trillion.

The UMKM actor, Yuni (55), never thought that Bank Jateng's credit disbursement had given him a blessing for his family. Thanks to the capital injection, the resident of Semarang City was able to continue his MSME business, in the form of handicrafts and snacks, which have been carried out since 2006.

Yuni applied for a capital loan through the Mitra Jateng 25 Credit program amounting to IDR 25 million, with a three percent interest rate. Actually he was hoping to get a KUR, but at that time the quota was full.

The loan is then used for business capital, including buying raw materials. Previously, he admitted that his business was not optimal, because he was hit by access to capital.

"When managing at the Johar Market Sub-Branch Office (KCP), all processes are very easy and not complicated. What makes you happy is that the disbursement is fast, only for two days," said Yuni, Friday, January 13.

The business, which was named Yuni Kreasi, had accumulated during the pandemic. "With that loan, we were greatly helped. In addition to the light installments of around Rp. 660 thousand per month, the interest is also low, only three percent. Thanks to this effort, we were able to divide children until they graduated and buy motorbikes," said the mother of one child.

Ahmad Fadlan also felt the ease of applying for credit at the state-owned bank. Customers from Mranggen, Demak Regency, in 2022 apply for a loan through the KUR route, with a ceiling of IDR 400 million along with a light interest of 0.2 percent.

The loan was then used to develop a shop named Nisa Hijab, which was managed with his wife.

He added that now his Islamic fashion store business, which is around Rp. 40 million per month, has grown. Fadlan also admitted that he was grateful to get this KUR, and still put his trust in Bank Jateng.

During the two terms of leadership of Governor Ganjar Pranowo, Central Java has become a province that has become a qibla or reference for MSMEs at the national level. According to Ganjar, this achievement is the result of the performance of the provincial government, along with all parties.