by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
button in toolbar for more information.
Kompas : October 22nd 2012
4IMC 2012 CONFERENCE SUPPLEMENT Wide Access and Low Interest, Possible? DEWI INDRIASTUTI These two factors are always debatable in the micro, small and medium-scale loan (UMKM) segment, that is the interest rate and access to the loan, because in reality the fact is the access is not as easy as other consumers' loans and the interest is comparatively higher. Every time a banker is asked about this matter he or she will reply: "For UMKM clients, the interest does not matter. The important thing is access to the loan." Indeed clients can afford to pay the high interest rates, but is it not better if next to wide or easy access the interest can be reasonably low. Is it not possible to combine these two factors? If the interest is lower, then there is a possibility that the business can enjoy better growth as the client can save from the payment. UMKM loans generally promise hig- her interest for the bank and banks generally give the reason that theirs is a great effort to get and disburse the funds so it is only natural that the interest is high. The bank uses numerous employees or officers to approach the clients in the cities, villages or remote areas and then taking care of the loan quality by re- gularly visiting the clients both to mo- nitor the clients' business situation and to get payment in installments. Loans for companies are indeed different as the amount is millions or trillions of rupiah with an interest rate below 10 percent, but bringing in huge returns. What's more every year banks always set a growth for its loan disbursement and this year the target is between 25 and 26 percent. Thus huge loans are very attractive making banks compete in providing corporations' and consumers' loans, such as home and car loans. So, how about UMKM loans? The high interest rate attracts a number of banks to enter this segment, but unfortunately they are not com- peting based on the interest rates. Deputy Governor of Bank Indonesia Halim Alamsyah on the sidelines of entrepreneur training at BI in Sep- tember actually asked back whether the high interest rate has caused the death of entrepreneurs' businesses. BI is pushing to make funding for entrepreneurs easier, especially for those who are starting their business. Currently about 51 percent UMKM in Indonesia get loans. Later it is expected that about one fifth of total banks' loans should be allocated for UMKM seg- ment. According to BI's as per July 2012 the interest rate is averagely 13.8 per- cent although in reality the interest rate for microloans can be as high as 30 percent per year. Executive Director for Loan De- partment, People's Credit Banks (Bank Perkreditan Rakyat or BPR) and UKM BI Zainal Abidin hopes that the UMKM interest rate can be made lower. "One single digit will be much better," Zainal said. It is believed that the interest rate will soon be lower due to stiff com- petition as more banks are entering this segment. However, BI's role is expected. If for the corporation, retail and consumer segments BI can ask banks to announce the basic interest rate then why not for UMKM? Head of Public Relations at BI Difi Ahmad Johansyah said that it is very possible that BI will do that. Presently BI is studying the possibility for banks to announce the basic interest rate for UMKM loans to enhance transparency for more open competition and finally to reduce the interest rate. Loan target According to BI's data, as revealed by Zainal Abidin, outstanding UMKM lo - an as per June 2012 was recorded at Rp 530 trillion. During 2012 the bank's target for UMKM loan is Rp 151 trillion, which matches the bank business plan (rencana bisnis bank or RBB). As of July 2012, only about 33 per- cent is realized out of the loan plan or about Rp 50 trillion which is lower compared to 40 percent reached in the January-July period last year. "Generally banks are boosting their loan disbursement, including micro- credit in the second semester," Zainal said. However, Zainal admitted that the slowdown in economy has contributed to the lower growth of loan disbur- sement this year. The majority of UMKM loans have been extended to the trading sector: 46.6 percent as per July 2012 while the balance is for processing or manu- facturing business: about 10.5 percent and for farming, hunting and forestry totalling 7.8 percent. Currently many banks are quite acti- ve in the UMKM sector. Bank Danamon has made its entry to this segment via Danamon Savings and Loans (Danamon Simpan Pinjam or DSP). Its DSP offices generally ap- proach the clients and potential clients at the markets due to high demand of UMKM loans in this type of business. Bank Andara uses the network of people's loans banks and cooperatives to disburse its microloans. To avoid bad loans only the best people's banks and cooperatives are chosen and are always monitored. The National Pension Savings Bank (Bank Tabungan Pensiunan Nasional or BTPN) has also entered the UMKM segment. One of its superior products is loans for retired people which forms 90 percent of its portfolio. This product is successful for BTPN because there is only a small number of bad loans. Bank Mandiri has also increased its microloan disbursement as well as its market share. In 2008 its market share was two percent, but by June 2012 it has increased by five percent. As per semester one of 2012 the total mi- croloan of Bank Mandiri has reached Rp 15.1 trillion for 765,000 clients. Considering the attractiveness of net interest margin from the microsector, it is undeniable that more banks are entering this business segment. Hope- fully, with the increasingly tight com- petition in the microsector, the interest rate can go down. Is it possible? KOMPAS/WAWAN H PRABOWO Craftsmen to finish the production of a guitar in Ngrombo, a village in District Baki, Sukoharjo regency, Central Java, on Wednesday (4/7). Most of the people in that village work as guitar craftmen. The guitars are sold most to local and foreign tourists. Access to microbanking leads this small scale enterprise to develop. KOMPAS, MONDAY, OCTOBER,22, 2012
October 21st 2012
October 23rd 2012