Lecturers Serving IPB University Provides an Alternative Business Finance Source for Rural SMEs
Hardly anyone expected that the impact of the COVID-19 pandemic would be this severe. Small and Medium Enterprises (SMEs) are suffering, their businesses are mostly affected by the pandemic, and some even have to close their businesses. When you start trying again, a problem arises, where to get the capital?
The COVID-19 pandemic, which has occurred since March 2020, has caused SMEs to run low on capital because they have to use it for household needs. Everyone knows that Indonesian SMEs are tough people in dealing with various situations and conditions. With various obstacles, Smes keep trying and looking for ways to keep their business running. When assistance from the government has not arrived, when assistance from other parties has not touched the issue of capital to start a business, SMEs use other alternatives by selling household assets such as vehicles, gold, and so on. It is also known that SMEs entrepreneurs also make loans to financial institutions even with high interest rates.
This was revealed in a discussion hosted by Dr. Dahri Tanjung, a lecturer at IPB University from the Vocational School Agribusiness Management Study Program in the Lecturer Serving activity on (11/9) at the Neglasari Village Office, Dramaga District, Bogor Regency. On this occasion, Dr Dahri gave advice to the women participating in the activity, who generally have small and medium scale businesses, so that they are smart in choosing sources of capital and are not entangled with loan sharks or institutions that claim to be cooperatives or savings and loan institutions but apply high interest rates.
"SMEs must be able to find alternative financing so that they are no longer too dependent on government incentives or conventional bank capital. For example, one of the sources of capital that can be accessed by SMEs in the villages around the Darmaga Campus of IPB, is the KIS Sharia Cooperative, which can make it easy for SMEs to obtain capital with various mitigating policies, "said Dr Dahri. In order for these SMEs to be able to obtain information and reference sources of their business financing, a focused discussion was held. In addition, it also displays one of the sources of capital that can be accessed by SMEs in the villages around the Dramaga Campus of IPB, namely KIS Syariah Cooperative. The cooperative has been operating for about four years and has members of around 1300 SMEs who are members of small groups called central consultation.
The form of KIS Sharia Cooperative's concern for its members’ problems includes medical assistance, scholarships for orphans, joint qurban, as well as care for COVID assistance. Other forms of KIS concern include delaying installment payments and reducing member credit installments (relaxation) because their businesses are affected by COVID-19. (IAAS/Els)
Published Date : 13-Sep-2020
Resource Person : Dr Dahri Tanjung
Keyword : SMEs, Financing, Lecturers Serving, Vocational School, IPB University, IPB Lecturer
SDG : SDG 12 - RESPONSIBLE CONSUMTION AND PRODUCTION, SDG 11 - SUSTAINABLE CITIES AND COMMUNITIES