The Role of Province Government in Enhancing Small Medium Enterprises (SME) Business Through the Establishment of Credit Guarantee

  • Didin Saepudin, Vip Paramarta, Asep Effendi


The development and strengthening program for Small and Medium Enterprises (SMEs) is one of the national and regional flagship programs because SMEs are economic actors who are capable of sustaining the national and regional economy, but on the other hand for the development of SMEs actors are still faced with various issues that still need facilitated and mediated by the government and regional governments, these problems include the difficulty of SMEs in getting access to capital in the form of credit, due to limited credit guarantees. The regional government of West Java Province has formed a credit guarantee agency, PT Jamkrida Jabar, to increase SME access to financing sources. This study aims to give an idea of ​​how much the contribution of the Regional Credit-Owned Enterprise Credit Assistance contributes to the improvement of SME's businesses, the provision of jobs, and the Regional Original Income. The study uses descriptive methods with a contribution analysis approach and dynamic models. The results showed that PT Jamkrida Jabar, during 2013-2016, was able to increase SME's sales turnover by an average of 99% per year and increase employment by an average of 7,249 per year and in 2015 contributed to Regional Original Revenues of Rp. 1,078,255,000, and in 2016 it rose 10.38 percent to Rp. 1,120,082,000.