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Kompas : October 22nd 2012
3 IMC 2012 CONFERENCE SUPPLEMENT Segment of Micro, Small and Medium-Scale Enterprises Never Dies DEWI INDRIASTUTI Micro, small and medium-scale enterprises (UMKM) in Indonesia never die. In fact it is the supporting mast of Indonesia's economy so that it survived the country's 1998-1999 economic crisis. Credit (Kredit Umum Pedesaan or Kupedes). These two products, which are highly popular with the nation's villagers, are the bank's unique features. "The Simpedes is very popular although we have never ad- vertised it," Listiarini said. As a comparison, BRI's other savings or deposits products targeted at the city people have collected about Rp 57 trillion. The bank provides loans either via Teras BRI or BRI unit offices. There is also a government loan program using its services called kredit usaha rakyat (KUR) or rural people's enterpreneurship credit. The three mechanisms have different maximum of loans that can be given to a client. KUR can provide only Rp 5 million maximum, Teras BRI can give Rp 11 million maximum while BRI Unit Rp 20 million per client. The bank's secretary Muhamad Ali added that to keep up growth BRI uses the direct approach by employing thousands of loan officers called mantri who continuously monitor the microclients' needs. "This way the mantri is fully aware of how the client's business is developing, including the prospect of paying up the loan, increasing the loan amount or perhaps the possibility of bad debt," Ali explained. Using this method the microloans will be in healthy condition. Listiarini emphasized that BRI will never increase its microloans or clients twofold in a short time if such an increase deteriorates the loan quality. "For us it is better to increase the number of clients who save with us including the amount of their savings because it is logically a healthier step," Listiarini said. Additionally BRI has also expanded its microbanking from only concentrating on Java now also other islands or parts of the nation. The economic growth in these areas has boosted the UMKM sector to become a new potential for banking penetration. Finally, there is no business that is totally free from risk. However, trusting the microclients will result in their awareness to pay back their loans while the bank's awareness to create trust in the microclients will always be required to boost the growth of microbusiness here. The total of UMKM in Indonesia is currently approximately 52 million and it is increasing in its role of supporting Indonesia's economy. As a matter of fact quite many owners of UMKM gradually step up in their positions, from micro to small and then to medium size businesses or even turning into major companies. PT Bank Rakyat Indonesia Tbk has long been active in this segment, especially the micro businesses. The United Nations has even established BRI as the world's lab for microloans. To serve its microsegment BRI uses the matching microbanking mechanism. So it does not only provide loans but also gathers or collects funds as well as payment, transfers and so on. In short a full microbanking service. The objective of this strategy is one: to be the leader in UMKM banking. President Director of BRI Sofyan Basir has often stated that BRI consistently strives to keep its microbusiness healthy. Among some of the steps taken by BRI from 2008 until 2011 is revitalizing the microbusiness to strengthen it further for better growth. One of the revitalization steps is to spread its wings by opening Teras BRI, which are small fixed or mobile offices for microvendors at traditional markets in the cities as well as in the villages. One example of Teras BRI is like that found in Tanjung Bumi, Bangkalan regency, Madura island, East Java. This coastal area is famous for its batik and Teras BRI is available close to Tanjung Bumi's traditional market located on a small street. One batik maker in Tanjung Bumi said when interviewed by Kompas that he had received a microloan from Teras BRI there. Not long afterwards he received a larger loan as his business has grown from micro to small and almost medium. Currently the portion of BRI's micro loans is 31.7 percent, while small loans is 20.7, medium 4.6 and consumers' loans is 18.9 percent. In sound condition To keep its microloan business sound, BRI constantly cleans up the unhealthy ones so that they are not stuck. Currently only 1.3 percent is stuck or problematic. For a short while BRI's microbusiness slowed down, but in the second quarter of 2012 it was back to normal. The business grew by Rp 4.8 trillion or triple during this quarter compared to the first quarter of 2012 amounting to Rp 1.5 trillion. In total the annual growth of BRI's microbusiness is 29 percent in the past five years. As per June 2012 the savings or deposits of BRI micro was Rp 111.5 trillion consisting of 28 million clients' accounts while its microloans was Rp 96.6 trillion consisting of six million accounts. Vice President Head of Investor Relations Listiarini Dewajanti explained to Kompas that BRI is active through its Rural People's Savings (Simpanan Pedesaan or Simpedes) and General Rural BRI's revitalization 1. Penetration of microsegment through the opening of Teras BRI and Teras Mobile as well as expansion of KUR 2. Extensification by expanding network to new potential areas, especially centers of economic growth outside Java 3. Increasing loan disbursement by enhancing the mantri and increasing their number 4. Increasing the limit of Kupedes for existing clients with more caution. Source: BRI KOMPAS/HERU SRI KUMORO Gemstone from Borneo were exhibited at Nusantara Craft Exhibition Products at the Jakarta Convention Center, Jakarta, Thursday (19/7). The Exhibition held by The Association of Indonesian Entrepreneurs is expected to raise the popularity of the craft products and to absorb more labor as well. This small scale enterprise needs access to microbanking to develop their products. KOMPAS, MONDAY, OCTOBER,22, 2012
October 21st 2012
October 23rd 2012