Business Linkages

 BUSINESS LINKAGES: ENHANCING ACCESS OF
SME TO FINANCING INSTITUTIONS
Prepared by: Tika Noorjaya


old.bappenas.go.id/get-file-server/node/2712/

 Scope of Study
􀂾 This report analyzes the models of partnership between Small Enterprises (UK)
and Large Enterprises (UB) or Medium Enterprises (UM). It also deals with the
development of Integrated Business Linkage Program (PKT) as a partnership
model, which is tied to funding agencies. Moreover, this report also presents the
application of the partnership models on Business Development Service (BDS) so
that they could prepare PKT to be promoted to banks, and could help increase the
access of Small and Medium Enterprises (UKM) to funding agencies.
􀂾 The analysis starts with the basic concepts of partnership and proceeds up to their
implementation. Therefore, the models can be formulized, which identify the rights
and obligations of, related parties and which are put into written agreement. The
analysis also puts forward eight cases from several sectors, which had obtained
assistance funds from banks, notably through PKT. The introduction of PKT to
BDS is expected to be able to be replicated in other places -- as technically
possible -- and to be able to be modified for commodities in the same types.

 Recommendations
􀂾 As the regulations on partnership are relatively new, there needs to be supporting
institutions; also there needs to be further popularization of various regulations so
that those involved in partnerships can understand and make use of the various
facilities in partnership implementation.
􀂾 In order to promote the growth of PKT and revitalize people’s interest in banks
concerning the financing of PKT, it is suggested that (a) financial sources for credit
programs be made available, (b) regulations on capital investment, which no
longer sets limit to Domestic Capital Investment (PMDN) and Foreign Capital
Investment (PMA) be changed, and (c) Other commodities which can be turned
into PKT be identified.
􀂾 It is expected that the PKT model will be able to be extended by introducing them
to Business Development Service (BDS) so that it could prepare PKT to be
promoted to banks.
􀂾 In order to develop BDS scattered in the provinces, ideally there needs to be an
agency at national level (for instance a second-tier bank which manages credit
programs) which continually monitors and develops BDS by updating information
for it and increasing other capacities of it. This way BDS will be able to provide
technical assistance in order to get financial assistance, which so far has been
undertaken by Bank Indonesia.
􀂾 BDS needs to be provided with training so that it can understand the full concept of
PKT, and the roles that it needs to play in promoting PKT, including the
understanding of the internal condition of each party in the partnership namely
Bank, UB/UM and UK. In order to increase the effectiveness of such training, the
training products should be tied to the possibility of training participants
implementing PKT after following the course. Training certification is provided in
phases, in accordance with participants’ achievements in implementing PKT.

 SELENGKAPNYA LIHAT: http://bappenas.go.id/files/8013/5230/1588/business-linkages-enhancing-access-of-sme-to-financing-institutions__20081123085412__1027__9.pdf