Micro Credit Development of Bank Jateng in Efforts to Improve SMEs Services in Central Java in the Future

YOGYAKARTA – Bank Jateng has developed Bank Jateng Partner Service Unit “Mitra” which one uses the Micro Business Credit (KUM) schemes methodology and the German Sparkassenstiftung advisory (SBFIC). The development of Micro Service Unit, to support Bank Jateng in fulfilling its public mandate as a Regional Development Bank to be able to contribute to the region economic development of the community, namely in Central Java Province. In accordance with the Financial Services Authority Regulation (POJK) Number 6 /POJK.03/2016 Regarding to Business Activities and Office Networks Based on the Bank’s Core Capital, BPD as part of commercial banks are required to  increase the portion of their productive loans including MSME loans.

To achieve the success of this goal, Bank Jateng continues to be open to reviewing and improving the micro business model it builds. Furthermore, the relationship established between banks and MSME customers is certainly not elegant if only making limited micro customers as a business objects. Efforts should be made, even guaranteed, that the loans provided are really for productive activities to benefit the economy, with benchmarks of success, the bank is able to control and escort MSMEs to upgrade to larger businesses, said Hanawijaya as Director of Retail Business and Bank Jateng UUS.

On this basis, Bank Jateng held a workshop “Chatting with the Banking Experts and Directors of Bank Jateng: Scope the Prospects and Future Forms of Micro Business Credit” at Mr. Supriyatno  House of Inspiration (04/03).

The speakers at the workshop were Krisna Wijaya (Director of LPPI / Senior Banking Practitioners and Economist / Scholar), Hanawijaya (Director of Retail Business and UUS of Bank Jateng), Agus Rachmadi (Director of BRI Microfinance Center) and Maswar Purnama (Head of RCEO Regional VII Semarang)

The workshop results is that in the development of lending to micro businesses in Bank Jateng needed commitment and support from all the stakeholders, the existence of strong credit monitoring therefore credit quality is well maintained and assistance to MSME actors. In providing the assistance to MSME entrepreneurs, Bank Jateng in collaboration with Sparkassenstiftung has conducted business management training through Micro Business Simulation (MBS) training for 736 times training for 9,453 MSMEs and financial planning training through Saving Games training for 15288 trainees.

For the perfomance of Micro Bank Service Unit “Bank Jateng Mitra” which was launched on February 2017 has channeled Mitra Jateng loans in the amount of 1.5 Trillion rupiahs with an Outstanding of 1.23 Trillion rupiahs distributed to 8,821 MSMEs with an NPL of 0.37%. Bank Jateng in this case was also appointed as a distributor bank of KUR (People’s Business Credit) and has distributed KUR for 2020 Fiscal Year on February 29 position, 437 Billion rupiahs to 3,203 MSMEs. Bank Jateng in 2020 received a ceiling allocation of 2 trillion rupiahs and it is hoped the target can be distributed maximum in July 2020 and will propose an additional ceiling allocation in 2020.

President Director of Bank Jateng Supriyatno in his closing remarks said, Bank Jateng as a Regional Development Bank (BPD) will commit in micro lending given that is in accordance with Bank Jateng’s Vision and Mission and can contribute to the regional development in Central Java and with Micro Credit can reduce the poverty and unemployment rates in Central Java. As for what has been done by Bank Jateng is already on the right track. This can be seen from the numbers we have achieved by Micro Service Unit, considering the development of Micro Service Unit is absolute since Bank Jateng is a Bank focuses on Retail indeed . As for the deficiencies in terms of technology and other deficiencies we will fix them immediately to achieve a better and more efficient of micro service.