Ascarya and Widodo Cahyono
ABSTRACT
The role of Micro Enterprises (MEs) in Indonesia,
especially after monetary crisis, considered as a safety valve in the process
of national economic recovery both in enhancing economic growth and reducing
unemployment rate. MEs have always been in difficulties to access loan or
financing from the banking industry (conventional as well as Islamic financial
institutions) for a number of reasons. This study is aimed to determine and
evaluate several existing models of conventional and Islamic microfinance for
MEs to find the best existing microfinance model.
The results show that the
best conventional Grameen model is Koperasi Mitra Dhuafa, the best Islamic
Grameen model is KUBE Sejahtera No.21, the best conventional rural bank model
is BKK Purwodadi, the best Islamic rural bank model is Amanah Ummah, the best
conventional micro banking unit model is BRI Unit, while the best Islamic micro
banking unit model is BSM Warung Mikro. The overall best MFIs are Koperasi
Mitra Dhuafa (cGrameen), BRI Unit (cMBU) and UGT (BMT). Moreover, the best
financing program is held by KUBE (iGrameen), the best social-development
program is held by KUBE (iGrameen), the best MFI performance is held by Amanah
Ummah (Islamic Rural Bank), while the best outreach is held by BRI Unit (cMBU).
The most important sustainability criteria are: 1) Aid Independent (MFI
Performance); 2) Coverage (Outreach); 3)
Savings Program (Soc-Dev. Program); 4) Profitability (MFI Performance); 5) Risk
Mitigation (Financing Program); 6) Social Services (Soc-Dev. Program); 7)
Pick-Up Service (Financing Program); and 8) Avg. Financing (Outreach).
Moreover, Cooperative-BMT model is the most balanced sustainable
model, which is operated as a more social business institution.
JEL Classifications:
G21, G28, O17
Keywords:
Microfinance, Islamic Microfinance, Microfinance Institution, Micro Enterprises
1.
INTRODUCTION
1.1 Background
There are plenty researches
and papers that have been conducted and discussed with regard to the positive
relationship between micro, small and medium enterprises (MSMEs) and economic
growth, their role in poverty alleviation, as well as their role in reducing
unemployment rate. Compared to the large scale of business or enterprise, MSMEs
are proven to be endured and resistant to the financial crises or
macro-economic shocks.
The role of MSMEs, especially after monetary crisis,
considered as a safety valve in the process of national economic recovery both
in enhancing economic growth and reducing unemployment rate. In the research
held by Central Bank of Indonesia in 2001 titled “Credit Crunch in Indonesia
After Crisis: The Fact, Causal Factor and Policy Implication” published by
Department of Economy and Monetary Policy Bank Indonesia in 2001, there existed
an acknowledgment from our industrial Banking that credit distributed to SMEs[1]
had minimum risk and – compare to large enterprises – SMEs has sound and better
business performance.
Several
data show the significance of MSMEs’ contribution towards Growth Domestic
Product for about 58.17% in 2009. It is more than that of the contribution of
large enterprises towards GDP. MSMEs sectors could absorb for about 96 million
labors (97.30% labor force).
Table 1.1 Statistics of Micro, Small and Medium Enterprises
in 2009
|
Number
|
GDP
|
Labor
|
Export
|
||
Micro
|
52,176,795
|
98.88%
|
32.68%
|
90,012,694
|
91.03%
|
1.51%
|
Small
|
546,675
|
1.04%
|
10.80%
|
3,521,073
|
3.56%
|
3.87%
|
Medium
|
41,133
|
0.08%
|
14.69%
|
2,677,565
|
2.71%
|
11.65%
|
Large
|
4,677
|
0.01%
|
41.83%
|
2,674,671
|
2.70%
|
82.98%
|
MSMEs
|
52,764,603
|
99.99%
|
58.17%
|
96,211,332
|
97.30%
|
17.02%
|
Source:
Ministry of Cooperation and SMEs
Furthermore,
the contribution of MSMEs to the national income through export activities
reaches Rp162.25 trillion or 17.02% from the total national export. With its
specialties – especially with its low financial capital –, MSMEs could produce
in the short-term process. Having simple management and huge unit volume
scattered in the whole nation, brought about MSMEs to have better resistant
toward the fluctuation of business cycle.
During
2005 – 2009, the MSMEs sectors have increased significantly in number (12.22%),
in share of GDP (15.10%), in labor absorption (24.01%) as well as in share of
export (47.05%), while on the contrary large enterprises have decreased in all
segments. More interestingly, the biggest part of MSMEs is micro enterprises
(MEs), which counted for 98.88% in number of enterprises, 32.68% share of GDP
and 91.03% of labor force. Furthermore, the biggest increases in number (15.36%)
and in employment (28.65%) have been in MEs, while these figures in SMEs have
been decreased.
Tambunan (2004) stated seven years after economic
crisis, the most valuable lessons that should be taken into account are: (1)
Indonesian economy cannot depend mostly on large enterprises, (2) SMEs has more
resistant compare to the large one and (3) there is no clear industrial policy
that enhances economic growth and creates vocation for poor and unemployed
people.
Despite historical success of MSMEs, there exist unresolved
issues that need to be further discussed whereby MSMEs, especially micro
enterprises (MEs) have always been in difficulties to access loan or financing
from the banking industry (conventional as well as Islamic financial
institutions) for a number of reasons.
Figure
1.1 Conventional Loan and Islamic Financing to MSMEs
Figure 1.1 shows that conventional loan share to MSMEs
has been stable at 22%, while Islamic financing share to MSMEs has been
declining. At the end of June 2011, productive conventional loan to MSMEs
reached 22% of conventional bank portfolio or Rp.428.8 trillion, while
productive Islamic financing to MSMEs reached 38% or Rp.31.3 trillion.
Table 1.2 Some Definitions of Micro, Small
and Medium Enterprises
|
ASSET*
|
WORKING CAPITAL**
|
YEARLY REVENUE*
|
CREDIT LIMIT***
|
LABOR**
|
Micro
|
<50
|
85
|
< 300
|
<50
|
3.6
|
Small
|
50 -500
|
514
|
300-2500
|
50 – 500
|
16.6
|
Medium
|
500-10000
|
2000
|
2000-50000
|
500 – 5000
|
38.2
|
Source: * MSME Act No.20/2008;
** Survey 2005; *** Bank Indonesia Regulation
Note: in IDR Million, except Labor in
number; USD1=Rp9000.
In addition, as shown in table 1.2, credit limit to
micro enterprises is less than Rp.50 million, while commercial bank
(conventional and Islamic) usually has minimum credit limit of Rp.50 million.
Therefore, loan and financing portfolio of conventional and Islamic banking
mostly have been extended to small and medium enterprises. Commercial banks
usually serve MEs through their micro-banking unit, such as BRI Unit and BSM
Warung Mikro, which according to the ministry of cooperative and SME (for 2010
up to October 2010) has been amounted to 18% of MSMEs portfolio or Rp.28.1
trillion.
Furthermore, within Rp50 million credit limit, there
are wide ranges of MEs variations. Mohamad (2011) finds that 70 percent of
52.18 million MEs need loan below Rp5 million with low penetration, while 30
percent of MEs need loan up to Rp50 million.
Certainly, limit credit formula ranging < Rp.50
million for the micro-enterprise should be reviewed carefully as so many poor
or low-income society only need credit for about Rp300.000 - Rp1 million, as
also suggested by Ascarya and Sanrego (2007). Compare to Grameen Bank
established by Dr Muhammad Yunus, they do give credit for micro-enterprises not
more than US$200 (Rp1.80 million with exchange rate Rp9000 = US$1).
Nevertheless, there are various conventional and
Islamic microfinance institutions that specifically serve micro enterprises
for-profit or not-for-profit motives, ranging from Grameen model, cooperation
model, rural bank model, as well as micro unit of commercial bank model. These
institutions, however, still could not meet the need of 52.18 million MEs.
Millions of MEs still could not access credit or financing from conventional or
Islamic microfinance institutions.
It is based on these issues; this study is trying to
analyze and discover the real problem of MEs, specifically to find a sustainable
conventional and Islamic Bank microfinance model for them, which can be
replicated throughout Indonesia, to be able to serve all financial services
needed by all MEs.
1.2 Objective
The objective of this study is first, to identify the
salient characteristics of sustainable Islamic microfinance model which able to
support MEs financing problems systematically and progressively. Second, this
study will determine and evaluate several existing models of Islamic microfinance
for MEs to find the best existing Islamic microfinance model, and third, this
study will propose sustainable Islamic microfinance model which is suitable for
MEs to progress gradually, feasible for Islamic Financial Institutions, as well
as sustainable in the long run.
1.3 Methodology
For the first and second objectives,
this study will apply Analytic Network Process (ANP) method with three steps.
First, focus group discussion (FGD) and/or in-depth interview will be conducted
with various stakeholders, such as micro-enterprises, Islamic banks, experts, academicians,
as well as regulators of MSMEs and Islamic bank, to fully understand the real
problems and to identify factors causing financing problems of MEs. Second, the
results of the first steps will be used to develop an appropriate ANP network
and its questionnaires to obtain proper data from MEs and Islamic bank. Third,
ANP analysis will be applied to set priority on alternative solutions as well
as policies and strategies to formulate optimal policy recommendations. Moreover,
for the third objective, this study will apply descriptive analysis based on
ANP results, in-depth interviews and Focus Group Discussions, to formulate microfinance
model for MEs.
1.4 Importance
of the Study
The results of this study are
expected to be beneficial for various stakeholders, especially for authorities
and regulators of micro-enterprises and Islamic financial institutions (Islamic
banks, Islamic rural banks and BMTs), to formulate policies and strategies to
improve access and availability of Islamic microfinance for MEs. This study
will also be beneficial for micro-enterprises to improve from their weaknesses.
Moreover, this study will also become an addition to the academic literatures
on Islamic microfinance.
[1] Micro
enterprises sometimes are grouped together with Small enterprises, so that
MSMEs sometime is termed as SMEs.
Tidak ada komentar:
Posting Komentar