Capital Loans Research Articles

FASILITASI AKSES PEMBIAYAAN BAGI PELAKU UMKM TERDAMPAK COVID-19 DI BANDA ACEH

Community service focuses on MSMEs affected by Covid-19 for businesses run by 32 business actors in Banda Aceh City. The form of activity is in the form of specific business assistance in financing facilitation to bank financial institutions to obtain working capital and investment. The facilitation method carried out is in the form of training on credit and banking, business mentoring, and business coaching which lasts for 3 months involving cross-related agencies. The results of the service activities are the increasing number of MSMEs that are bankable and fulfill aspects of good business management in accordance with bank requirements to obtain business capital loans. Of the 32 program participants, 62.5 percent are already bankable, while 37.5 percent need further assistance.

Implementation Of The Natural Rural Community Empowerment Program (PNPM) In Ompu Raja Village, East Hutapea Laguboti District-Toba Samosir Regency

Indonesia has a poverty problem. The National Program for Independent Rural Community Empowerment is one of the strategies for community empowerment in an effort to accelerate poverty reduction. The SPP (Savings and Loans for Women) program is one of the programs from PNPM-MP that makes women or housewives the target of empowerment. The purpose of implementing the SPP (Savings and Loans for Women) program is to reduce poverty through capital loans for women accompanied by empowerment. This study aims to find out how the implementation of the National Program for Independent Rural Community Empowerment, in particular the implementation of the SPP (Savings and Loans for Women) Program in the study in Ompu Raja Hutapea Timur Village, Laguboti District, Toba Samosir Regency, about what aspects influence the community in participating in the program, how the flow implementation, as well as the obstacles encountered in the ongoing implementation of the program and their solutions.The research method used in this study is a qualitative research method. The research informants were the perpetrators of the National Program for Independent Rural Community Empowerment in Ompu Raja Hutapea Timur Village, namely the Village Head, TPK Chair, Village Community Empowerment Cadre, Person in Charge of Operational Activities, UPK Chair, and several group members who were participants of the SPP program. Data collection techniques were carried out through in-depth interviews and then the results were analyzed qualitatively. From the results of research conducted in the village of Ompu Raja Hutapea east regarding the implementation of the National Program for Independent Rural Community Empowerment, especially the SPP activity program, community participation is more dominated by the economic aspect. The lack of routine meetings for community empowerment by the government also results in obstacles such as delays in loan repayments. However, the community stated that they felt helped by the implementation of the SPP program.

The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use

ABSTRACTThe purpose of this study was to analyze the effect of interest rates, bank-level and macroeconomic variables on bank lending based on the type of use. The analysis method uses an autoregressive distributed lag (ARDL) model with quarterly data for the period of 2011Q1 - 2020Q1. The results show that investment lending behavior can be explained well by all bank-level and macroeconomic variables for the long run. The bank-level variable also reflects the performance and soundness of the bank, namely the capital adequacy ratio and loan to deposit ratio. Meanwhile, macroeconomic variables include inflation and real GDP. Consumer lending behavior is better explained by macroeconomic variables than bank-level variables. Meanwhile, GDP is the only variable that has a significant effect on working capital loans, which means that the behavior of working capital loans is more influenced by the business cycle as indicated by changes in real GDP. GDP is the only variable that consistently has a significant positive effect on bank loans for the three types of loans. Banks need to continue to emphasize the principle of prudence in providing credit by taking into account the term and credit risk, as well as internal and external factors.

CORPORATE COOPERATION WITH COOPERATIVES IN THE AGRIBUSINESS SECTOR: AN ANALYSIS OF FORMS AND PROTECTION OF STATE LAW

<p><em>This study aims to examine and analyze the form of cooperative relationships between companies and cooperatives that use the principle of partnership in agribusiness and how the legal protection of the state against cooperatives in cooperation with companies in the field of agribusiness. This study uses normative juridical research methods. Normative juridical research is research that utilizes secondary data and primary data as the main data. This study uses an empirical juridical approach and a statutory approach, which in the discussion of this study will use descriptive analysis to describe the findings in the field. The results of the study indicate that at this time, cooperation between companies and cooperatives that use the principle of partnership in the field of agribusiness can be carried out in aspects such as capital, technology, marketing, production facilities, production processes, product processing, and so on, while the form of state legal protection that the state must implement against cooperatives in cooperation with companies in the agribusiness sector is in the form of preventive legal protection from the government, namely in terms of price determination, such as determining interest on capital loans to determining market prices.</em><em></em></p>

CORPORATE COOPERATION WITH COOPERATIVES IN THE AGRIBUSINESS SECTOR: AN ANALYSIS OF FORMS AND PROTECTION OF STATE LAW

<p><em>This study aims to examine and analyze the form of cooperative relationships between companies and cooperatives that use the principle of partnership in agribusiness and how the legal protection of the state against cooperatives in cooperation with companies in the field of agribusiness. This study uses normative juridical research methods. Normative juridical research is research that utilizes secondary data and primary data as the main data. This study uses an empirical juridical approach and a statutory approach, which in the discussion of this study will use descriptive analysis to describe the findings in the field. The results of the study indicate that at this time, cooperation between companies and cooperatives that use the principle of partnership in the field of agribusiness can be carried out in aspects such as capital, technology, marketing, production facilities, production processes, product processing, and so on, while the form of state legal protection that the state must implement against cooperatives in cooperation with companies in the agribusiness sector is in the form of preventive legal protection from the government, namely in terms of price determination, such as determining interest on capital loans to determining market prices.</em><em></em></p>

DESCRIPTION OF THE QUALITY OF LIFE OF POOR HOUSEHOLDS BENEFICLARIES FAMILY HOPE PROGRAM IN MEURAXA SUBDISTRICT, BANDA ACEH

Background: The lack of PKH Beneficiary Families (KPM) who participated in the health examination of pregnant women and toddlers as well as the lack of optimal implementation of education, and still low healthy lifestyle among the community tha causes vulnerable to various diseases, the ability of the community to carrying out daily activities, as well as the ease of access to information, etc. are some factors that affect the level of quality of life of PKH beneficiaries. This study aims to determine factors related to the quality of life of poor families of PKH beneficiaries. Methods: This research is a descriptive study with a cross-sectional design. The sample in the study was 73 respondents in KPM PKH in Meuraxa Subdistrict, Banda Aceh. Analyze data using univariate and Likert scales. Result: Research shows that respondents were predominantly primary education (72.6%), unemployed (58.9%), moderate income (52.1%), number of extended family members (68.5%), long receiving PKH benefits for 3 years (41.1%), ownership of small family assets (60.3%), and respondents with poor quality of life (58.9%). The domain image of physical health quality almost half had a good quality of life (47.6%), psychological domain mostly had a good quality of life (54.1%), the domain of social relations had half good quality of life (50.1%), and the environmental domains almost half have a good quality of life (46.2%). Recommendation: The government needs to intensify the family planning program, so that every household beneficiary of PKH can plan their household better, as well as conduct training and capital loan for small businesses in housewives that can later help the family economy so as to improve the quality of life of the beneficiaries poor of PKH.

How Loan Distribution and Credit Troubled in Fostered Partners can be Done? Case Study: CSR Fund from PT. Bukit Asam Tbk. Tanjung Enim, South Sumatra, Indonesia

This research aims to determine the Corporate Social Responsibility (CSR) partnership program implemented by State-Owned Enterprises, BUMN, namely PT. Bukit Asam, Tbk, Tanjung Enim, South Sumatra, as a form of concern for the community of small business actors by providing business capital loan assistance. Credit extension services cannot be separated from the risks that occur, such as non-performing loans. Non-performing loans that happened in PT. Bukit Asam Tanjung Enim South Sumatra, namely small business actors as fostered partners experienced a disaster, went bankrupt and fled, or business owners died. This research method uses descriptive qualitative analysis, administrative procedures for granting credit, analysing systems for giving credit assessment, monitoring credit, calculating the level of the collectibility of non-performing loans, and analysing efforts to rescue non-performing loans. The analysis results show that in 2015 to 2017 and 2018, the category of non-performing loans dominates from other categories. In 2015, 2017,2018 and 2019, the collectability in the current category experienced an increase from 1.8%, up 8.6%, up 35.40% and up to 749.87%. The percentage of loan collectibility obtained shows the amount of non-performing loans in 2015 to 2017, 2018 and 2019 has fluctuated and tends to decrease, from 78.11% to 88.74%. Reduced to 60.45% and fell to 27.58%. This finding shows that there are efforts to improve credit performance to have no problem with credit. It is recommended to CSR managers of PT. Bukit Asam, Tbk. Agra must pay attention to the level of business turnover and the provision of collateral in anticipation of bad credit and for existing lousy credit to be rescheduled or reconditioned for loan arrears or can submit evidence of problematic receivables or write-off of accounts receivable if the conditions are not collectable.

Individual Companies as New Legal Entities in Law Number 11 of 2020 on Job Creation

The government, through Law Number 11 of 2020 on Job Creation encourages the ease of doing business for Micro and Small Business actors with the formation of individual corporate legal entities. This policy of forming a private company is a new breakthrough from the government and can be used as a stimulus to restore economic conditions. The establishment of this individual company is further regulated in Government Regulation Number 8 of 2021 on Company Authorized Capital and Registration of Establishment, Amendment and Disbanding of Companies that Meet the Criteria for Micro and Small Businesses. The type of research used is normative juridical. The data analysis was conducted in a descriptive qualitative manner. The results show that this individual company is a new legal entity created by the rolling of the Job Creation Law. Business actors who will register an individual company must meet the criteria for micro and small businesses as stipulated in the provisions of laws and regulations regarding micro and small businesses regulated in the Law Number 20 of 2008 on Micro, Small and Medium Enterprises. Various facilities are provided to business actors, such as registering individual companies by filling out electronic forms and not requiring a notary deed. Business actors are facilitated by the existing regulations in the management of the company because as the sole owner, the existence of financial reporting obligations makes it easier to monitor the company's financial governance which is useful, especially for access to capital loans to banks.

Peran Koperasi Mina Sejahtera Dalam Meningkatkan Kesejahteraan Nelayan Desa Muara

This study aims to analyze the role of the Mina Sejahtera Cooperative in improving the welfare of fishers in Muara Village, specifically the discussion is directed at discussing the program, implementation and results of the program. The method used is descriptive with a qualitative approach to describe the conditions and situations or various social reality phenomena in society, which is the object of research. The data collection technique was done using observation, interview and documentation. The results showed that the Mina Sejahtera Cooperative program was based on problems that were often experienced; the program was business capital loans, fishermen savings, social funds, and famine funds. The programs that have been implemented have given good results, namely that the community can have a place and business capital through the programs provided. During times of famine, there is no longer confusion.

Risk management of chilli supply chains using weighted failure mode effect analysis

Chilli supply chain is very vulnerable to risk due to scattered production centre, large number of actors along supply chain. Hence, risk management of chilli supply chain is very crucial to be executed in order to reduce the losses received by farmers and traders. The study aims to (i) identify and assess supply chain risks, and (2) arrange efforts to manage risks in the chilli supply chain. Weighted Failure Mode Effect Analysis (WFMEA) enriched by Analytical Hierarchy Process (AHP) was implemented to evaluate high-risk priorities and to manage those risks. The results showed that risk in marketing chain got the highest priority to be controlled since the greatest potential failure occurred in this channel with the weighted Risk Priority Number about 647.3. Risk indicators in this channel were cashless payment, major harvesting, and price fluctuations. Strategies to manage those risks were the provision of storage warehouses, planting time arrangements, bailout funds for cash purchase, harvest and post-harvest technology and farm capital loan. Government supports was required for providing the small-scale storage, home scale ozonation technology to extent the chilli shelf life and improve the product quality as well as policies on accessible farmer’s credit with farming guarantee system.

Analysis of the Effectiveness of Monetary Policy Transmission through a Line of Credit and Inflation Expectations in Indonesia

This study aims to determine the effectiveness of the transmission mechanism of monetary policy by reviewing the amount of the deadline that required the transmission mechanism of monetary policy in achieving the goals of the final form of the output gap and inflation by using the channel of credit and inflation expectations. In addition, this study also aims to determine the relationship long-term and short against the target output gap and inflation. This study uses a regression model Vector Error Correction Model (VECM) to estimate the influence of the transmission mechanism of monetary policy to the output gap and inflation through the channel of credit and the regression model of Vector Autoregression (VAR) to estimate the influence of the transmission mechanism of monetary policy to the output gap and inflation through the channel of inflation expectations. The Data used in this research is the data series time quarter from 2008 to 2018. Data peneliltian used to estimate the influence of the transmission mechanism of monetary policy to the output gap and inflation through the channel of credit in the form of secondary data consisting of the benchmark interest rate of Bank Indonesia, the interest rates on the interbank money market 1 month, loan interest rates, money supply (M2) and the amount of working capital loans disbursed. While the data used to estimate the influence of the transmission mechanism of monetary policy to the output gap and inflation through the channel of inflation expectations in the form of secondary data consisting of the benchmark interest rate of Bank Indonesia, inflation expectations. The secondary Data used is sourced from the annual reports that are published from the official website of the Bank of Indonesia, the data of the Central Bureau of Statistics and the International Monetary Fund. The results of this study showed that the effectiveness of the transmission mechanism of monetary policy through the credit channels require the deadline each of the 8 (eight) of the quarter and 10 (ten) quarter in achieving the goals of the end of the output gap and inflation. While the effectiveness of the transmission mechanism of monetary policy through the channel of inflation expectations require the deadline each of the 4 (four) quarter and 6 (six) quarter in achieving the goals of the end of the output gap and inflation. The results also showed only policy transmission mechanism built rmelalui credit lines that have long-term relationships against inflation while the transmission mechanism of monetary policy through the channel of inflation expectations have short-term relationship strong. Keywords: The Transmission Mechanism Of Monetary Policy, Output Gap, Inflation.

Delivery Mechanisms and Microenterprises Performance: An Analysis of Microcredit Program

Purpose: The process of identifying and defining effective delivery mechanisms is a critical issue in the management of microcredit programs to meet the firm's objectives and the customers’ needs. The purpose of this paper is to look at the relative importance of delivery mechanism in microcredit programs. In addition, this paper analyses the relationship between delivery mechanism and business performance among micro enterprises involved in microcredit programs. Methodology: The primary data of the study were obtained from 756 micro entrepreneurs under two major microcredit programs (AIM and TEKUN). Descriptive and t-test analysis were used to explain the findings of the study. Findings: Analysis of the study shows that cooperation from staff, the duration and method of loan repayment and monitoring of loan capital are important mechanism in the management of microcredit programs. T-test analysis revealed a significant difference in delivery mechanism between the two microcredit programs involved. Empirical findings show that the performance of micro enterprises under the AIM microcredit program is better than that of micro enterprises under the TEKUN microcredit program. Practical Implications: The performance of a microcredit program depends largely on their resource management. This involves operational efficiency, credit products offered, and customer support services. These three elements are critical factors in determining the effectiveness of the delivery mechanism in a microcredit program. Originality/value:The efficiency of delivery mechanisms through strategic resource management not only can enhance the competitive advantage of the AIM microcredit program but also affect the performance of the micro enterprises involved. Doi: 10.28991/esj-2021-01281 Full Text: PDF

The Social Responsibility of State-Owned Enterprises (SOE) Through the Partnership Program with Micro, Small and Medium Enterprises (MSMEs)

Justice and welfare are the goals of national development, so the state must be present to protect and prosper its people, through State-Owned Enterprises (SOE) given social responsibility through the Partnership Program. This research is a normative legal research using a philosophical approach. The results of this study indicate that the essence of social responsibility of State-Owned Enterprises through the Partnership Program with Micro, Small and Medium Enterprises (MSMEs) is an effort to balance the interests of all parties. This balance of interests can only be achieved through certain regulatory mechanisms. Fulfillment of interests is carried out proportionally and in a balanced manner through regulatory mechanisms, namely through the use of funds originating from a net profit of no more than 2% (two percent), in the form of channeling funds for the Partnership and Development Program. both in the form of business capital loans as well as guidance and purchase of production support tools aimed at improving the quality of social life both for the company itself and for MSMEs which are implemented with the principles of fairness, balance, transparency and sustainability. Keywords : Social Responsibility; State-Owned Enterprises (SOE); Micro, Small and Medium Enterprises (MSMEs). DOI: 10.7176/JLPG/109-05 Publication date: May 31 st 2021

Role of Rural Bank in MSE Economic Development in Indonesia

This study aims to know the role of rural bank in MSE economic development in Indonesia. The method used in this study uses regression The data used are secondary data obtained from bank publication reports during period 2018 - 2019. The population used in this study is rural banks in East Java and sample selection based on purposive sampling. The results showed that working capital loans from rural bank (BPR) have a significant effect on sales turnover, net profit margins and MSEs working capital turnoverThis research will be useful in knowing the performance of working capital disbursement to MSEs based on existing models based on existing parameters.

Loan Asset Indicators and Commercial Bank Fragility in Kenya

Purpose. To test the predictive ability of loan asset indicators on Commercial bank fragility in Kenya. 
 Design/Method/Research approach. The study adopted positivism research philosophy with exploratory research design. The study population was 42 Commercial banks in operation on 31st December 2015. Secondary data was collected from Central Bank of Kenya and analysed using Stata Statistics/Data analysis. Generalised Linear Model was used to establish the relationship between asset indicators and bank fragility. The concept of credit creation was explored as the genesis of bank fragility. This study is part of early warning systems in detecting bank fragility.
 Findings. The research found a direct relationship between a lagged dependent variable, loan portfolio growth, loan deposit ratio and bank fragility.
 Practical implications. Recommendations are followed on the basis of this study. At first, regulator develop a potential solution to control loan portfolio growth, cap loan deposit ratio and limit the level of non-performing loans. Banking practitioners should model monthly reporting requirements to ensure that banks are able to disclose the ratio and explain any significant changes. Secondly, since Non-performing loans can act as an incentive for bank managers to seek deposits and lend more thereby exacerbating the problem, banks with NPL to gross loans greater than an upper threshold determined by the regulator should not be allowed to attract more deposits. Thirdly, set the maximum level of loan deposit ratio to avoid expensive, sensitive and high-risk loan capital. Implementation of these recommendations will lead to secured social welfare.
 Originality/Value. The study examines the role of certain loan asset indicators on bank fragility and extends the discussion in the area of early warning systems and commercial bank instability in Kenya.
 Research limitations/Future Research. This research contributes to the discussion on bank fragility and early warning systems. The further research should review evidence from other jurisdiction with high numbers of distressed institutions to determine how many months or years before distress the three significant variables could predict fragility. Besides, there is need for research on insider loans as defined and why there was no statistical significance.
 Paper type. Empirical.

Livelihood Assets and Strategies of People with Disabilities in Urban Areas of Ethiopia

The relationship between poverty and disability has continued to be contentious and relevant as it contributes to policies addressing the needs of disabled people. Yet, this remains complex and under-researched in the context of developing countries. The literature on disability has used isolated elements of the livelihood capitals: natural, human, physical, financial, and social capital. This article seeks to fill this gap by bringing evidence from the study undertaken in Hawassa, Ethiopia, by employing a sustainable livelihood framework holistically. By using a sustainable livelihood framework, the paper reveals that livelihood challenges resulting from disability are multifaceted and inter-related. Infrastructural inaccessibility and social discrimination compounded by structural factors limit the human, social, and financial capital of disabled people. Consequently, they depend on their family and NGOs as a source of financial capital (loan) and skill training; and engage in informal, vulnerable, and socially insecure livelihoods to survive. Different policies and practical measures are proposed to overcome this situation.

MEASUREMENT OF COOPERATIVE PRODUCTIVITY LEVEL: IN ACEH: THE MALMQUIST INDEX APPROACH

Based on article 33 of the 1945 constitution, cooperatives are the backbone of Indonesia national economy. However, the hopes of cooperative to become the locomotive of the Indonesian economy are still far from expectation. the purpose of this research to measure the level of productivity and efficiency of cooperatives by using Data Envelopment Analysis and Malmquist Index analysis tools. Input variables used are own capital, external capital, labor, and members, while the output variable is turnover and the surplus (SHU) cooperatives from 23 districts/cities in Aceh from 2014 to 2016. Test results show that cooperatives that have an index value-efficient only in seven districts / cities, while in terms of productive cooperatives in Aceh as many as 14 districts/cities in Aceh. It is expected that policymakers in fostering and empowering cooperatives in Aceh, both from the government and cooperative management and other stakeholders, can improve cooperative performance through cooperative education and training for cooperative human resources, provide a conducive business climate and provide capital loans with easy schemes for cooperative. The limitation of this study is that the types of cooperatives used are cooperatives as a whole not classifying cooperative types. Testing the level of efficiency and productivity of cooperatives with various types of cooperatives that exist is a special attraction The objective is in the third line, the method is in the fourth line, the results and discussion are in the sixth line, the conclusions and suggestions are on the eighth line and so on.

Partnership patterns in rice farming

Lowland rice farming run by farmers in Toabo Village is faced with limited capital problems, limited agriculture machinery ownership, and grain prices low. Another problem is the Mamuju Regent Decree (SK) No. 188.45/120/KPTS/1/2018 on the implementation of the grain trade. In this decree, there is a rule that prohibits farmers from selling their products out of the area until Bulog stock needs are fulfilled. To overcome this problem, we need a solution that can help farmers provide capital loans, agriculture machinery, and guarantee the production market. One concept that can be done is cooperation in the form of partnerships. This study aims to describe the implementation of rice farming partnerships. Analysis of the data used is descriptive analysis. The results showed that the partnership that was carried out by UD Subur Dua with partner farmers used the agribusiness operational partnership (KOA) partnership pattern.

Distribution of Productive Zakat for Reducing Urban Poverty in Indonesia

Productive zakat is a strategic mechanism to help alleviate poverty. This study aims to explore the mechanism by which BAZNAS manages productive zakat in an attempt to help alleviate poverty in Indonesia. This study uses a qualitative exploratory approach. Documentary data pertaining to zakat distribution to mustahīq in the urban poor Surabaya was collected from the East Java BAZNAS office. Several interviews with the leaders of this office were also conducted to capture their views on the management of productive zakat. The results showed that to reduce the poverty of the urban poor, the BAZNAS applies a strategic distribution of productive zakat implemented through (1) a revolving capital loan to increase venture capital of the mustahīq members of MSMEs run under the qarḑ al-ḫasan contract, and (2) providing work equipment for starting or developing businesses. These mechanisms were effective in helping the poor for starting and expanding their business, hereby improving their wellbeing. It is suggested that amil zakat may increase the allocation of zakat distribution for productive purposes, rather than for one stop consumption. This study expands the understanding of the currently developed approach to zakat management and provides sound good practices in reducing poverty.

Pengaruh Capital Adequacy Ratio dan Loan to Deposit Ratio Terhadap Earning Before Tax pada PT. Bank BJB (Persero), Tbk Periode 2012-2018

This study aims to determine the effect of the Capital Adequacy Ratio and the Loan to Deposit Ratio on Earning Before Tax at PT. Bank BJB (Persero), Tbk. The method used is explanatory research. The analysis technique uses statistical analysis with regression testing, correlation, determination and hypothesis testing. The results of this study Capital Adequacy Ratio has a significant negative effect on Earning Before Tax by 5.1%, the hypothesis test is obtained t count <t table or (-0.520 <2.571). Loan to Deposit Ratio has a significant negative effect on Earning Before Tax by 12.4%, the hypothesis test is obtained t count <t table or -0.841 <2.571). Capital Adequacy Ratio and Loan to Deposit Ratio simultaneously have a negative but insignificant effect on Earning Before Tax, the regression equation Y = 176,283 - 4,730X1 - 0,132X2 and a determination value of 49.6%, hypothesis testing obtained F value <F table or (1,970 <5,410).