Supporting MSMEs, Akulaku Finance Conducts Loan Restructuring

University of Indonesia (UI) Economic Observer Fithra Faisal assesses that the micro, small and medium enterprise (MSME) sector in Indonesia must now be able to adapt and maximize various new ways of accessing funding for business continuity, following the COVID-19 pandemic that has been ongoing in Indonesia until At the moment.

Regarding access to capital, Fithra Faisal said that MSMEs must be able to find alternative financing so that they are no longer too dependent on government incentives or conventional bank capital. One alternative in the current era is through digital-based financing platform options, such as Akulaku Finance Indonesia.

MSMEs must be more adaptive. This means that because many MSMEs are now going online, access to capital can also be done through alternative online facilities. “If we look at sectoral developments, transactions are still there. “If MSMEs join and enter the digital business platform, especially for those who haven’t, it should be able to make MSMEs survive more,” he told journalists in Jakarta, Wednesday 12 August 2020.

Support MSMEs to Rise

In the midst of this pandemic, not only the health sector is affected, but almost all sectors including the economic sector, especially MSME players. Various parties need to work together to help revive the businesses of MSME players who have an important role in the revival of the economic sector. Recently we heard that there is a multinational company that provides assistance to hundreds of thousands of stall traders who take shelter in its ecosystem. The assistance provided takes various forms, some in the form of additional business capital, others in the form of donations. Real actions like this can help the MSME sector which is experiencing a difficult period.

Moreover, the majority of MSME players are in the unbankable or underserved category, so it is sometimes difficult to get quick access to funding from banks. For this reason, Fithra also appealed to companies providing digital financial services to also take advantage of this momentum and become one of the solutions to the problems faced by MSMEs so that they can rise.

“Financial service providers outside banking should be quite helpful. “On the other hand, if there could be some kind of restructuring of installments, for small businesses that are in a depressed condition, such as providing relaxation in installment payments,” he said.

Not only that, the economist appreciated the steps taken by Akulaku Finance to provide installment restructuring to their customers.

“It would be very good for [Akulaku Finance] if it turns out that the recipients of the restructuring are MSME players. This should also be an example for other fintech companies. “Because the problem that occurs among MSMEs is a decrease in the ability to pay installments, so MSMEs need credit restructuring, making payments easier, and even new capital installments,” said Fithra.

Installment Restructuring

Regarding the need to restructure installments for business capital, one of the Dimsum traders in Depok, West Java, Suganda, revealed that he had been laid off by his place of work where he previously worked as a staff engineer at a hotel in Depok. Therefore, he has the initiative to build his independent business.

Before the COVID-19 pandemic hit Indonesia, Suganda revealed that he applied for a cash loan from Akulaku Finance to meet the capital needs of his business. In fact, to meet the need for transportation facilities such as cars, he also applied for additional financing in installments through the company.

Therefore, with conditions that were supposed to run smoothly, financial conditions were finally disrupted due to the COVID-19 outbreak in Indonesia. He admitted that paying capital installments was experiencing problems, especially by relying solely on the Dimsum business, whose sales conditions were declining.

“I am grateful to know Akulaku. In difficult conditions during the COVID-19 pandemic, I received relief in the form of a reduction in installments. “In my opinion, this is really helpful for people like us,” said Suganda.