Project News

Consultation desk at the seminar

Following the survey of financial access conditions of metalwork industry in Tegal conducted in cooperation with LWG, the business matching seminar was held in October 2013 by Kospin Jasa (one of the largest local non-banks, savings & loan cooperatives) together with Disperindag Tegal, in which Kospin Jasa explained its financial products/ services and prepared the consultation desk to the participants of the metalwork SMIs. According to the survey, almost all among surveyed 25 SMIs have been reling only on purchase of raw material scraps on credit for their working capital finance, and paying 20% more compared to delivery-on-cash. Only four of surveyed SMIs currently borrow the loan from the commercial banks. Majority did not indicate collateral requirement or high interest rate as constraint, but mentioned "terms of repayment does not match their cash-flow and has no flexibility", if asked for the reason of hesitance to borrowing from the commerical banks. On the other hand, those SMIs understand an importance of accessing to other means of finance than the current practice. In response, the Expert Team has surveyed the supply side to know whether such financial institutions as responsive to such financial conditions exist locally or not.

Then, the largest non-bank, Kospin Jasa was identified, and Kospin Jasa and LWG agrred to jointly hold the above seminar. Kospin Jasa is famous for its long-time support for batik and small/ micro industries, and the president himself stated that terms of collateral/ interest rate is almost same as comercial banks, but we always reach the terms of repayment through the consultations with borrowers, and always respond flexibly to anytime inquiry on repayment. The seminar, following the introduction of Kospin Jasa's products/ services, received the individual consultation of 15 SMIs out of 30 invited ones and 3 applications to the membership on that day (2 was added later, with several telephone inquiries). Kospin Jasa is now planning the training of financial management to the seminar participants, and continues to support for improving the means of finance available to metalwork industry.