Committee IV DPD RI Questioned the Realization of Revolving Fund

Jakarta, dpd.go.id - Committee IV DPD RI questioned the low realization of revolving funds from the Revolving Fund Institution of Micro, Small and Medium Enterprises Cooperative (LPDB-KUMKM). In the year 2018, the planned revolving fund of Rp 1.2 trillion will be given to the business actors with small interest.

Chairman of Committee IV DPD RI, Ajiep Padindang asked LPDB-KUMKM to immediately provide certainty to the proposers of revolving funds associated with proposals loan funds that have been proposed earlier. According to him, LPDB-KUMKM is too selective in providing revolving funds, so it tends to be slow in responding to proposals that come.

"LPDB is expected to really encourage the provision of capital for UMKM  including cooperatives. For 2018, there will be an additional 500 billion capital plus an LPDB fund of 700 million, so it will be accumulated to 1.2 trillion, but by the end of July it is still around 28 billion rupiah, it is still in Java, "Ajiep said in a hearing (RDP) with LPDB-KUMKM Business Director, Adi Trisno Juwono in Meeting Room of Committee IV DPD RI, Parliament Complex Senayan, Jakarta, Wednesday, July 18, 2018.

Ajiep added that the slow distribution of revolving funds for this region is feared will make LPDB-KUMKM unable to reach the target. In fact, some regions did not apply for loans, because the conditions are considered too difficult.

"It's okay to be careful but not excessive, and then tend to respond very slowly, or not even respond, letting the applicant wait for years. They make changes in the mechanism of proposal submission and also the terms of recommendation from the Office of Cooperatives. Cooperative service is also very careful in issuing recommendations, "he explained.

In response, LPDB-KUMKM Business Director, Adi Trisno Juwono said that it is expected that by the end of 2018, the realization of revolving fund will reach 70% from Rp 1.2 trillion. He acknowledged that there is a selection of lending to business actors, including the requirement of recommendation from the local Cooperative Office.

Adi added, the total proposals that come in this year as many as 221 proposals and which are being processed reach 21 proposals with the value reached more than 400 billion rupiah. "For that we are sure to reach the target of 70%, although currently it is still around the island of Java, but it is expected to be evenly distributed throughout the region in Indonesia," he explained.

Some obstacles in the process of disbursement of this revolving fund, Adi said, is the existence of structural changes and improvements in disbursement management. However, it is expected that with the improvement of the management system, the revolving fund verification process will be better so that the loan can be faster liquid. * Tho

  • 18 Juli 2018