Small medium enterprises at risk?

Small medium enterprises is an economic strategy in Indonesia today. The number of these enterprises sector is about 54.2 million. This means that 99 percent of all enterprises in Indonesia are small medium. Besides this, the sector can absorb more labor and minimise unemployment.

Raden |Iskandar, president of association small medium enterprises in Indonesia (Forum UKM) said small medium enterprises need easy acces capital from commercial banks. “It need more capital to create business still running, but some times hard to acces land from bank,” he said.

He adds that it’s hard to understand why commercial banks do not pay much attention in owing capital to the sector small medium. In fact, sector enterprises creates employment and is surviving despite the economic impact by the global crisis experienced in 2008. It becomes a wonder as to why banks are lending money to bigger businesses while small-scale businesses miss out. While this is happening, then how will small and medium businesses grow? Or why is the government turning a blind eye on small and medium enterprises which are at risk of closing down?