Jakarta, dpd.go.id - The government is expected to be able to place itself as an 'advicer business' in the development policies of micro, small and medium enterprises. The Micro, Small and Medium Enterprises (UMKM) Guarantor Bill is expected to be a solution to various UMKM problems in Indonesia. This was conveyed by the Vice Chairman of Committee IV DPD RI, Siska Marleni at the Hearing (RDP) of setting the content of DPD proposal on the Guarantee of Micro, Small and Medium Enterprises with a number of experts.

Siska assessed, the need for policies that regulate the government to provide services starting from registration to product marketing. "Well, how does this bill accommodate that. How to facilitate the user not only in financing but also marketing their products. "It is very feasible to be included in the material content," Siska said.

Meanwhile, another member of Committee IV, Budiono said that the bill need to regulate the existence of a guarantor institution evenly throughout Indonesia. In addition, the budget for the guarantor institution needs to be increased to improve its performance.

"Guarantor institutions like Jamkrida do not yet exist in all provinces. In terms of performance, it is not too strong, it is still difficult to find operational funds. Now this is how guarantees can be evenly distributed in all provinces. Therefore, Jamkrida needs to be encouraged for all regions, "he said.
Responding to this, the lecturer of the Bogor Agricultural Institute (IPB), Muhammad Najib, explained that the problem faced by UMKMs in Indonesia so far was the low quality of human resources, the role of a less than optimal support system and ineffective policies. The highest inhibiting factor is competitiveness.

Najib added, politicians and bureaucrats were only focused on providing subsidies to UKMs that did not have a large effect, so it should be thought of to provide subsidies for start-up costs and create independent units.

"The old paradigm of providing subsidies is a form of UKM's development with large budgets but has little effect, it should focus on providing subsidies for start-up costs, thus creating an independent unit rather than subsidizing income to clients," he said.

Another problem presented by the IPDN lecturer, Jati Nangor Andi Heni is that so far UMKMs have difficulty accessing credit sources. Because in general, the guarantees put forward by UMKMs are deemed inappropriate by financial institutions.

"For this reason, he considered that there is a need for guarantee fees that will alleviate UMKMs. Besides that, for loan interest, it also needs to be reviewed, "said Heni.

In addition to capital issues, operating permits also need to be repaired. According to him, generally MSMEs are reluctant to administer operational permits and survive as informal businesses, because there are indications of fear of being taxed. **

11 Februari 2019