THE IMPACT OF MICRO CREDIT ON MSME (Micro, Small, and Medium Enterprise) OPTIMIZATION TO SUPPORT THE ECONOMIC GROWTH
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Date
2010-07-11
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CIEL SBM-ITB Gedung SBM-ITB
Abstract
MSME empowerment is an effort to strengthen Indonesia Economy and to catalyze domestic economic
growth. It has been proven by the importance of the MSME sector as an economic safety net especially in the
time of a persistent crisis. In 2003, MSME has reached 30, 4% of PDB and increase by 53, and 3% of PDB to
Rp 1.778 trillion in 2007, such significant value to economic growth. One of the constraints faced by MSME
is limited capital funding accessibility. Business credit’s difficult to gain because the complexity of terms and
condition. Based on this condition, in 2007 Indonesian government provide micro credit, type of
credit/funding that applicable to MSME in the form of business capital and investment supported by
guarantee facility for productive enterprise. This paper aimed to analyze the impact of Micro credit on MSME
optimization during 2007-2009.
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Keywords
micro credit, economic growth