MSME-Based Industrial Development Strategy Through the Role of LPDB (Revolving Fund Management Institution) and South Sumatra UMKM Readiness Facing the Digital 4.0

Tien Yustini


This study aims to analyze various issues related to the distribution of revolving funds for Small and Medium Enterprises and Cooperatives in South Sumatra. The analysis was carried out by describing the absorption of revolving funds in MSMEs and the potential absorption of labor in the MSME sector quantitatively. The results of the analysis show that MSMEs in South Sumatra generally face some fundamental problems, pillars are self-sufficient. First, the problem of capital, both marketing, "For capital issues may still be overcome. Because the government through the banking and the Ministry of Cooperatives can provide sufficient access to provide loan capital. However, on the marketing side is still very lack of knowledge." Marketing is a problem. To overcome these problems, SMEs in South Sumatra were addressed, by improving product quality and standardizing their products. Besides helping increase human resources and access to financing sources, collaboration between government and e-commerce will continue and be able to realize a shared vision to make MSMEs in South Sumatra able to participate in the era of Digital Energy of Asia in 2020. In an effort to encourage this growth, the provincial government of South Sumatra has facilitated new business actors and existing SMEs to expand their business by holding socialization and training in various district / city areas. Business actors can also get training, which cooperates with the Cooperative Education and Training Agency (UPTD Balatkop) in regencies / cities in South Sumatra. The trainings are funded with deconcentration funds. The Ministry of Cooperatives and SMEs will support and will provide training, capital by providing cooperative loan facilities for SMEs through the Revolving Fund Management Agency (LPDB). Through LPDB, facilitated SMEs for cooperatives can be capital loans with 7 percent interest. For business actors already legal entities can borrow 4.5 percent

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