Challenges and Problems in Implementing the People's Business Credit Program in Makassar City, South Sulawesi Province

Abstract

Challenges to the success of the People's Business Credit Program (KUR) today include increasing the program's reach, institutions, regulations, empowerment, and strengthening inter-stakeholder synergies. Some of the problems with KUR include the still low absorption rate, the scheme which is felt to be inappropriate for all actors, the program's reach is limited, as well as assistance and institutional problems. The study aims to examine the challenges and problems encountered during the implementation of the People's Business Credit Program in Makassar City, South Sulawesi Province. The research was conducted by applying a qualitative approach, using descriptive analysis method. In this study it was found that the eligibility criteria for small businesses set by banks were one of the main obstacles to obtaining KUR. In addition, the ability of human resources to manage finances, which influences the smooth return of KUR, is also a barrier to their access to KUR. It is hoped that the bank will continue to channel KUR funds to micro, small and medium business actors and it will be even better if the channeled KUR funds target new business actors so that the number of MSMEs will increase. Because it is proven that KUR funds have an impact on increasing the performance of MSMEs both in terms of the output of the number of MSME units and employment and can increase GRDP.