Warta Ekonomi, Bandung - The Government Investment Center (PIP), a Public Service Agency (BLU) under the Ministry of Finance, has channeled Rp8.35 trillion in financing to 2.21 million micro businesses in West Java.

PIP President Director Ismed Saputra said that as a coordinated fund tasked with supporting the development of ultra-micro businesses, PIP has reached more than 10.6 million debtors in Indonesia.

The accumulated loans that have been disbursed over the past seven years have reached Rp40.94 trillion until July 22, 2024. For the West Java region, the distribution of Ultra Micro (UMi) financing involves 15 distributors, namely PNM, Pegadaian, BAV, KSPPS Artha Bahana Syariah, Al Manar Sejahtera Bersama Consumer Cooperative, KSP Kopdit Pelangi Kasih, KSPPS BMT Ibaadurrahman, PT Reliance Indonesia Financing Business (REFI), KSPPS Abdi Kerta Raharja, KSPPS BMT Bina Auladi Mandiri, KSPPS BMT Nusa Ummat Sejahtera, BMT Niaga Utama, Baitul Mandiri Savings and Loan Cooperative, KSPPS Benteng Mikro Indonesia, and Mitra Dhuafa Cooperative.

“There are a total of 2.21 million debtors with financing distribution reaching Rp8.35 trillion in West Java,” Ismed told reporters in Bandung, Thursday (25/7/2024).

PIP distributes financing to both group and individual customers whose business scale is still very small by involving 87 non-bank financial institutions (LKBB) and reaching 510 districts and cities in Indonesia.

The most distribution was channeled in Java with a nominal value of Rp24.66 trillion to 6.71 million debtors, followed by Sumatra with a total distribution of Rp9.8 trillion to 2.3 million debtors.

The Sulawesi region reached Rp2.67 trillion with 672,417 debtors, while Bali and Nusa Tenggara reached Rp2.26 trillion with a total of 584,517 debtors.

Next is the Kalimantan region with a total distribution of Rp895 billion with 225,075 debtors. Then the Maluku and Papua regions reached 158.7 billion with 36,886 debtors.

Ismed said that the financing channeled to ultra-micro business actors has good quality, indicated by the low non-performing loan (NPL) figure.

“In principle, besides channeling financing, we also empower ultra-micro businesses through training, incubation, promotion and empowerment,” he said.

Ismed explained that business empowerment is carried out through training ranging from business techniques, financial bookkeeping, product branding, to online marketing.

For incubation, PIP provides assistance on aspects of legality fulfillment, product quality improvement, production capacity, financial management and product marketing.

Not only credit, PIP also provides coaching and mentoring services for debtors through management training to product marketing support.

“This policy is to ensure that the loans provided are appropriate and provide benefits to lift the UMi debtor class for the better,” he said.

Meanwhile, Z&T Craft Owner Euis Hermawati said that her party received a loan from PIP of Rp20 as well. Currently he has a net monthly income of up to IDR 18 million.

“God willing, Z&T craft also has a plan with PIP and UMI in September we will promote to Paris,” she said.

Meanwhile, as a form of assistance, PIP carried out the Kick Off of the 2024 Assistance Training of Trainers Program in 10 districts / cities in Indonesia in collaboration with the Faculty of Agricultural Industrial Technology, Padjadjaran University (Unpad).

“This program aims to uniform the standard of training materials, improve the competence of assistants, and encourage the quality of products and businesses of UMi actors,” said Ismed.

The ToT Pendamping program has been successfully piloted in 2022-2023 in 20 districts / cities, having a positive impact on more than 900 UMi business actors in terms of legality and online marketing.

The Project Based Learning (PBL) method applied by the Padjadjaran University Business Incubator has proven effective in improving the competence of assistants in various aspects, including human resources, product quality, legality, and marketing.

“The success of the ToT program encourages us to expand its reach. We believe, by collaborating with various universities and incubator institutions, this program can stimulate innovation and reach more UMi business actors,” he explained.

The ToT Pendamping program will be implemented in two stages. The first phase focuses on training mentors in 10 districts/cities spread across Indonesia.

Eight leading universities and incubator institutions will be involved in this training, including Padjajaran University, Payakumbuh State Agricultural Polytechnic, Brawijaya University, Sam Ratulangi University, Syah Kuala University, Hindu University of Indonesia, Sebelas Maret State University, and Sepuluh Nopember Institute of Technology.

The second phase will involve the establishment of the “Kedai UMi” community. This community is expected to be a forum for UMi business actors to collaborate with each other, share knowledge, and improve product quality and marketing.

The ToT Pendamping program is projected to last for five months, with a target of training 55 assistants and implementation to 110 UMi business actors.

“PIP hopes that this program can make a significant contribution to the empowerment and development of UMi businesses in Indonesia,” he concluded.

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