Description

In the last 2007, in the economic growth side, for the first time since Asia's crisis, the economic growth of Indonesia has reached above 6% per year. The economic growth that was becoming more balance, the surplus of Indonesia's Balance of Payment and fairly well foreign exchange reserve that reached US$ 56,9 billion (equal to 5,7 import months and government foreign loan repayment) by the end of 2007, has supported the effort of maintaining the rupiah value stability, especially for mid-long-term.

At the banking side, it can be considered that the banking indicators growth was quite encouraging, continuing the tendency of improvement that has been undergone since 1984. The healthier and beneficial banking industry, in fact has grown stronger as shown by the ability to absorb several fluctuation in the economy.

From the credit growth rate point of view, the consumer credit was the credit type that has the highest boost in growth from 9,51% in 2006 to 24,84% in 2007, while the working capital credit from 16,98% to 28,57%, and investment credit from 12,51% to 23,15%.

Nationally, the consumer credit share was still small, that was about 28,20% from banking total credit, while the share of micro, small, and medium scale business (Usaha Mikro Kecil dan Menengah - UMKM) credit in 2007 reached 50,18%. While the share of consumer credit, as one of the components in UMKM credit, reached 50,41%. Therefore, the actual productive credit granted for UMKM was only 25,29%. This was considered very small if compared to the potency of UMKM business unit, which reached 48,9 million, and only about 39% or 19 million units has been served by the banking.

To cope with those problems, at the end of 2007, the government released a Public Business Credit (Kredit Usaha Rakyat – KUR), which is the credit with the guarantee of PT Askrindo and Perum Sarana Pengembangan Usaha, with credit limit up to Rp 500 million. Up to the end of February 2008, the total KUR has reached Rp 1,7 trillion with 25.789 debtors.

From the point of view of UMKM potency, which has not been granted the credit facilities, reached 30 million UMKM, so the realization of KUR was still a long way from the expectation. Even the average KUR granted by the banking was about Rp 69 million per debtor, or still above the micro credit limit, that is only Rp 50 million.