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A Study of the Impact of Bank Credit on the Performance of Micro, Small, and Medium Enterprises in the Province of Gorontalo
Corresponding Author(s) : Andi Juanna
American Journal of Economics and Business Management,
Vol. 5 No. 2 (2022): American Journal of Economics and Business Management
Abstract
In Indonesia, the vast majority of businesses belong to Micro, Small, and Medium Business (MSMEs). In 2014-2016, for example, the number of MSMEs was more than 57,900,000 units, and was estimated to grow to more than 59,000,000 units. Cooperatives and MSMEs Office of the Gorontalo Province (2018) states that this figure increased between 2012 and 2017. MSMEs had 42,523 units in 2012, but 81,776 units in 2016 or a 52% increase over 5 years. Out of this number, only 50 MSMEs are fostered by the government. Due to a lack of government budget, only a few MSMEs have been helped by the government. MSMEs received credit transactions from banks worth Rp 468,280,272,160, or a 250% increase from 2015. In this study, therefore, we analyze how much bank credits influences the development of MSMEs.Drawing on a descriptive research, this present study employed literature studies approach to conduct the process of searching, collecting, and analyzing data. The results revealed that the performance of the MSMEs sector in the first quarter of 2019 as a whole also improved. MSMEs lending in the first quarter of 2019 grew by 7.62% (yoy), an increase from the fourth quarter of 2018 which was 4.22% (yoy). This condition pushed the portion of MSMEs credit to total bank credit to increase to 27.93% from the previous 27.75%. The existence of MSMEs continues to be supported by Bank Indonesia through a policy on the percentage of credit that must be disbursed to MSMEs with a minimum portion of 20% of MSMEs loans. This portion in the first quarter of 2019 has been increased to 27% of total loans in the Province of Gorontalo.
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- Bank Indonesia. (2019). Gorontalo Province Economic Report 2019. Bank Indonesia.
- BPS. (2011). Gross domestic product. BPS. Jakarta, Indonesia.
- Isaac, E. (2005). Article: The Role of Information for the Advancement of SMEs. Yogyakarta: People's Sovereignty.
- Sudaryanto, S. (2011). The need for ICT-education for managers or agribusinessman to increase farm income: Study of Factor Influences On Computer Adoption in East Java On-Farm Agribusiness. International Journal of Education and Development Using ICT, 7(1), 56-67.
- Sudaryanto, S., & Hanim, A. (2002). Evaluation of the readiness of SMEs to face the ASEAN free market (AFTA): Perspective analysis and theoretical review. Journal of Management Accounting Economics, 1(2).
- Nabila, A. 2018. Analysis of the Effect of Inflation, Exchange Rates and Interest Rates on Investment in Indonesia (Thesis Strata 1, University of Muhammadiyah Surakarta, 2018) Accessed from http://eprints.ums.ac.id/62287/1/NASKAH%20PUBLIKASI.pdf.
- Nopirin, Introduction to Macro and Micro Economics first edition, (Yogyakarta: BPFE, 2000), 9
- Ojima, D. & Fabian, E. (2013) Impact of Interest Rate on Investment in Nigeria, 5(3), 103-109.
- Putri, R, A. & Isbanah, Y. (2020) Factors Influencing Investment Decisions on Stock Investors in Surabaya, Journal of Management Science, 8(1), 197-206.
- Ramadhani, Anendy, Putri; & Ramadhani, Anendy, Putri (2020). Factors Influencing Investment Decisions In Stock Investors In Surabaya. 8(1), 197-209.
- Robert Marshall and Miranda (eds), Popular Dictionary of Money and Banks, (Jakarta: Ladang Libra and Intimedia), 134
- Sadono Sukiro, Modern Macroeconomics, (Jakarta: PT Raja Grafindo Persada, 2007), 484.
- Savitri, Astrid. 2020. Investment For Millennials, Become Rich Millennials By Investing, First Edition. Yogyakarta : Genesis.
- Sindhu; & Kumar, Rajitha (2014). Influence of Risk Perception of Investors on Investment Decisions: An Empirical Analysis. 2(2). 15-25.
- Sugiyono. (2014). Statistics For Research. Bandung: Alphabeta.
- Sukirno, Sadono. 1998. Introduction to Macroeconomic Theory. Jakarta: Raja Grafindo Persada.
- Sukirno, S., 2000. Modern Macroeconomics. Jakarta: King Grafindo Pustaka.
- Sukirno, S., 2004. Introduction to Macroeconomic Theory (Third Edition). PT. Rajagrafindo Persada: Jakarta.
- Sukirno, Sadono. 2007. Development economics: processes, problems and policy bases. Jakarta: Kencana.
- Suparmono, Introduction to Macroeconomics, (Yogyakarta: Publishing and Printing Unit (UPP) AMP YKPN,), 135.
- Sunariyah. 2000. Capital market knowledge. Second Edition. Yogyakarta: UPP AMP YKPN.
- Tandelilin, Eduardus. 2010. Portfolio and Investment, Theory and Application, First Edition. Yogyakarta : Kanisius.
- Taswan and Euis Soliha. 2002. Perspective Analysis of Investors and Speculation in the Capital Market. Journal of Economic Focus, Vol.1 No. August pp. 157-166.
- Zaini Ibrahim, Introduction to Macroeconomics Revised Edition, (Serang: Institute for Research and Community Service (LP2M) IAIN Sultan Maulana Hasanuddin Banten, 2013), 130.
References
Bank Indonesia. (2019). Gorontalo Province Economic Report 2019. Bank Indonesia.
BPS. (2011). Gross domestic product. BPS. Jakarta, Indonesia.
Isaac, E. (2005). Article: The Role of Information for the Advancement of SMEs. Yogyakarta: People's Sovereignty.
Sudaryanto, S. (2011). The need for ICT-education for managers or agribusinessman to increase farm income: Study of Factor Influences On Computer Adoption in East Java On-Farm Agribusiness. International Journal of Education and Development Using ICT, 7(1), 56-67.
Sudaryanto, S., & Hanim, A. (2002). Evaluation of the readiness of SMEs to face the ASEAN free market (AFTA): Perspective analysis and theoretical review. Journal of Management Accounting Economics, 1(2).
Nabila, A. 2018. Analysis of the Effect of Inflation, Exchange Rates and Interest Rates on Investment in Indonesia (Thesis Strata 1, University of Muhammadiyah Surakarta, 2018) Accessed from http://eprints.ums.ac.id/62287/1/NASKAH%20PUBLIKASI.pdf.
Nopirin, Introduction to Macro and Micro Economics first edition, (Yogyakarta: BPFE, 2000), 9
Ojima, D. & Fabian, E. (2013) Impact of Interest Rate on Investment in Nigeria, 5(3), 103-109.
Putri, R, A. & Isbanah, Y. (2020) Factors Influencing Investment Decisions on Stock Investors in Surabaya, Journal of Management Science, 8(1), 197-206.
Ramadhani, Anendy, Putri; & Ramadhani, Anendy, Putri (2020). Factors Influencing Investment Decisions In Stock Investors In Surabaya. 8(1), 197-209.
Robert Marshall and Miranda (eds), Popular Dictionary of Money and Banks, (Jakarta: Ladang Libra and Intimedia), 134
Sadono Sukiro, Modern Macroeconomics, (Jakarta: PT Raja Grafindo Persada, 2007), 484.
Savitri, Astrid. 2020. Investment For Millennials, Become Rich Millennials By Investing, First Edition. Yogyakarta : Genesis.
Sindhu; & Kumar, Rajitha (2014). Influence of Risk Perception of Investors on Investment Decisions: An Empirical Analysis. 2(2). 15-25.
Sugiyono. (2014). Statistics For Research. Bandung: Alphabeta.
Sukirno, Sadono. 1998. Introduction to Macroeconomic Theory. Jakarta: Raja Grafindo Persada.
Sukirno, S., 2000. Modern Macroeconomics. Jakarta: King Grafindo Pustaka.
Sukirno, S., 2004. Introduction to Macroeconomic Theory (Third Edition). PT. Rajagrafindo Persada: Jakarta.
Sukirno, Sadono. 2007. Development economics: processes, problems and policy bases. Jakarta: Kencana.
Suparmono, Introduction to Macroeconomics, (Yogyakarta: Publishing and Printing Unit (UPP) AMP YKPN,), 135.
Sunariyah. 2000. Capital market knowledge. Second Edition. Yogyakarta: UPP AMP YKPN.
Tandelilin, Eduardus. 2010. Portfolio and Investment, Theory and Application, First Edition. Yogyakarta : Kanisius.
Taswan and Euis Soliha. 2002. Perspective Analysis of Investors and Speculation in the Capital Market. Journal of Economic Focus, Vol.1 No. August pp. 157-166.
Zaini Ibrahim, Introduction to Macroeconomics Revised Edition, (Serang: Institute for Research and Community Service (LP2M) IAIN Sultan Maulana Hasanuddin Banten, 2013), 130.