Abstract
The Micro, Small, and Medium Enterprises (MSME) sector is not an easy sector to obtain credit from Bank/ Financial agent, because too many obstacles to a access Bank credit, such as: collateral, administrative aspect, company stability. The purpose of this study is to implement an effective financing model for ceramic craftsmen, in relating with achieving competitive advantage of pottery Plered craftsmen. By using descriptive method, research result shows The effectiveness of funding model for ceramic craftsmen that consist of 4 elemens, such as: local government of Plered, Ceramic craftsmen, Financial agency, and Deposit insurance agency; which is all elemens shoul be made a well-coordinated. The effectiveness of financing aspects in ceramics industry, encouraging the development of ceramics production and also craftsmen productivities. Company productivity will increase too. It means product sustainability of pottery industry will be achieved and competitive advantages of ceramic Plered will be increased.
Highlights
The impact of the systematic economic crisis in Indonesia occurred in 2008/9 has resulted in unavoidable bankruptcy for a lot of big companies that failed to maintain its operation. This is not the case for Micro, Small, and Medium Enterprises (MSMEs) which are more resilient to crises because they do not use many imported materials in their business
According to Thaken (2018), the obstacles for micro, small, and medium enterprises to access funds to the bank are the type of micro, small, and medium enterprises, the management, and fulfillment of requirements in obtaining funds
The appropriate financing development for the ceramic companies in Plered is using the support from the Bank of Indonesia (BI) program
Summary
The impact of the systematic economic crisis in Indonesia occurred in 2008/9 has resulted in unavoidable bankruptcy for a lot of big companies that failed to maintain its operation. This is not the case for Micro, Small, and Medium Enterprises (MSMEs) which are more resilient to crises because they do not use many imported materials in their business. The information from banking sector shows that the fund channelled to the MSME sector have ben returned smoothly, and does not cause a large non-performing loans. The ratio of non-performing loans to funds channelled to MSME sector is around 2%-3% (Manurung et al, 2009). As stated by William et al (2015), capital is one of the most important aspects in a business enterprise
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