STUDY ON ROLE OF RURAL BANK INDUSTRY IN SUPPORTING MICRO, SMALL AND MEDIUM ENTERPRISE IN INDONESIA

Abstract

ABSTRACT

This study examines the Role of Rural Bank Industry in Supporting Micro, Small and Medium Enterprises (MSMEs) in Indonesia. In this research, Rural Banks have a very tight competition in the banking world and other financial institutions. In accordance with the size of the Rural Bank's assets, it should be devoted to serving the middle and lower society and financing MSMEs.The results show that Rural Bank is the spearhead for small communities and MSMEs entrepreneurs in providing financing to them; The existence of Rural Bank should be maintained as the spearhead of the nation's economy; The contribution of Rural Banks in MSME financing should continue to be improved.Based on the result of research can researcher make recommendation that Rural Bank must continue to do internal revamping; In addition, promotion to introduce Rural Bank to the community must be done continuously; On the other hand, the government with perbarindo as a container of Rural Bank should continue to make policies that support the development of Rural Banks.

Key Words: Rural Bank, MSMEs, Internal Revamping, Regulation