Harianjogja.com, JOGJA – Ultra Micro Financing Program (Umi) is expected to befully  socialized, especially related to the financing mechanism that the community has considered it difficult to access. Because the program is considered to be a financing solution for micro business actors who have been hampered by collateral issues.

"The constraints [access to credit] of micro business actors, especially the super micro, are related to the collateral problem," said Economics Expert of Universitas Pembangunan Nasional (UPN) Veteran Yogyakarta, Ardhito Bhinadi when  being contacted by Harian Jogja, Sunday (24/6).

Ardhito said the role of regional credit guarantee institutions is very important in helping micro businesses. He pointed out that there is a regional credit guarantee company in East Java. This institution will assist the micro business actors to have the  finance of the  venture capital.

"If the micro businesses does not have a guarentee that can be collateral, or only have less [capital] funds, it can be covered by local credit guarantee institution, but not all regions have this institution, including Jogja," said Ardhito.

The UMI program, he said, is the right solution for business actors who want to get additional business capital. Although the initial loan amount is not much, only 1 million rupiahs, but it is enough to run the business. Moreover, this micro business capital needed is also not much.

"If the business grows, the amount can also increase, and interest rates are also relatively lower," Ardhito said.

Ultra Micro Financing is distributed by three state-owned companies, namely PT Pegadaian, PT Bahana Artha Ventura and PT Permodalan Nasional Madani. Ardhito added that these three BUMN are considered strategic enough for being UMI suppliers. As BUMN that often distributes business financing, the interest rates are also lower than banks.

Nevertheless, Ardhito emphasized the need for the intense socialization and the right target so that people also understand and know the program. So far, he said, one of the difficulties of micro business actors to access the business financing is due to the problem of information that is poorly understood.

"In addition, it needs to be an cooperation with the local governments, because they [the local government] have a complete database of MSME actors. It also needs to be done so that the funds disbursed can be utilized in accordance with the business needs," Ardhito said.

Source http://ekbis.harianjogja.com/read/2018/06/25/502/924042/umi-solusi-tepat-pembiayaan-bagi-pelaku-usaha-mikro