Microfinance Institutions and SMEs

Later financing institution Grameen Bank model of a central focus after perintisnya, Prof. Muhammad Yunus of Bangladesh get Nobel Peace prize for economics. Grameen Bank is a financial institution like a bank that obviate the provision of collateral. This model is a breakthrough indeed extraordinary that can be done in the problem of poverty and unemployment in the country is the strong flow of capitalism.

In application, Grameen Bank is for the poor, which have had difficulty getting access to capital through financial institutions that already exist. Inability of the poor to provide collateral which is the main condition causing their banking institutions increasingly marginalized. Banks tend to follow the economic mechanisms that kapitalistik and only accessible to those groups of people rich.

Bangladesh experienced what the problem with poverty, unemployment, and a variety of social surely not much different from the conditions experienced and faced by the community in Indonesia. Various social problems, such as the amount of unemployment that the cumulative increase with problems of poverty also seems to have no signs of decreasing. Their access to facilities to improve the quality of life is very low, both for the health service, education, and welfare of others.

Since 2001, the government together with the House of Representatives has menggodok Draft Law on Microfinance Institutions (MFIs Bill). MFI is an alternative to financial institutions primarily to serve the needs of micro, small and medium enterprises which have had difficulty reaching access to banking or financial institutions that already exist. But up to now not hear news kelanjutannya again.

The existence of MFIs actually enough to bridge the strategic importance of SMEs in obtaining capital. MFI is a financing institution with a different bank. Moreover Perkreditan Bank Rakyat (BPR) which is the representative of the bank in the channel of credit to SMEs is in practice far from expectations. Even many of the complaints that the SME credit management in BPR is much more difficult than the general bank.

In addition to credit, MFIs are also collecting funds from society. Its function is similar to the bank that this is a polemic as it was considered to cause a conflict with the Law Number 7 / 1992 on Banking. However, MFIs are also similar to the cooperative rules apply for membership and the distribution of the remaining businesses (Shu), which applies in the cooperative.

Fetus MFIs actually started the activity of the community that we support through funds such arisan. The existence of MFIs is quite close to the community because applying the principles of social habits or customs that exist in our society. They not only can join the existing MFIs but also establish new MFIs. Establish new MFIs is very possible for the SMEs. MFIs in the Bill mentioned that MFIs that have a turnover amounted to savings or collect more than Rp 50 million up to Rp 1 billion must have permission of MFIs. While MFIs collect total savings of more than Rp 1 billion must change the form of a business Perkreditan Bank Rakyat (BPR).

With a maximum turnover of this large MFIs have a large enough scope to develop the business. Moreover, MFIs are also likely to be mediating in the credit or grant, either from the central government and from foreign aid. According to the records of SMEs Forda Yogyakarta, the average MFI in the province of DIY has a turnover up to hundreds of million rupiah. This amount is still very mungkiin increased with the diversity of business activities that can be done MFIs.

In the Bill of MFIs also mentioned there were at least 8 business activities that can be done MFIs. Among them, give credit business, doing business as an insurance agent, inclusion in the capital that supports the activities of microfinance institutions, and establish cooperation with national and international institutions. In addition, the MFI can also do business based on the provisions of sharia, such as a trust to receive alms, infaq, and shodaqoh.

In management, the MFIs are made with the agreement among its members. Both the loan interest rate, method pengucuran funds, and the division of profits in the form of the remaining businesses. So also in the monitoring, the principles of transparency, accountability, and trust among the members with a grip that made the main reference.

In addition, as the spirit of cooperative melandasi that the interests of members, MFIs in the orientation association membership also reflects the strength of the collective. The strength of collective bargaining is an alternative to the position of SMEs. Therefore, MFIs represent the collective strength of the SMEs in solving problems together, especially those aspects related to the capital. The form of the strength of this model is similar to the Grameen Bank which is based on shared beliefs.

With the benefits of various banking institutions MFIs than expected then this is the obstacle in the empowerment of SMEs can be overcame. MFI is an alternative financing institution that is accordance with the interests of SMEs. But unfortunately, the existence of a legal umbrella to protect the movement of MFIs in the form of legislation is also not out until now. Government as holder of the mandate of the people need to show keberpihakannya. So also the people's representatives in the House of Representatives, how they work in formulating the Law on MFIs for 5 this year? Hopefully the government and the House of Representatives does not consider the problem of SMEs and fortune as this is not more important affairs of their salaries increase. (*)