Magelang regent, Central Java, Indonesia, Ir.H.Singgih Sanyoto, states in daily newspaper "Suara merdeka", on february 8, 2011, that it is important to suport informal sectors. This is reasonable because of its support to reduce numbers of unemployment in magelang city. Therefore, the improvement of investment for small scale industry is very important. To win this game, government should take part in the decision to.
Many new entrepreneurs, in magelang, are dominated by home industries which employ at least 2 employees. The existance of Bapas 69 Bank and BPR Bank have supported the new entrepreneurs to grow up and expand their business by giving them flexible loans, and some of them have penetrated export products market. BRI bank also gives opportunity for the entrepreneur to borrow some money for their business without mortgag. This rules has made hundreds of new entrepreneurs submit their proposal with different platforms. As a result, Magelang regency can contribute for province income and increase for 5,8% in 2010.
Small Scale Industry as a local economic generator
Economy system which is based on small scale indursty, like home industries, has supported national economy and when the economic crisis which occured in 1997 to 1999 succeeded to show the solidity of this informal sector.
Besides, the director of Bapas 69 Bank, H.Fran Suharmaji,SE.MM, from the beginning till now remains to support what home industries "wants". This commitment should be motivator for other banks to do so. The magelang government has also committed to make a cooperation to the local bank like Bapas 69 banks and BPR bank.
For expansion, the government has provides media to exhibit their products and this method, in fact, has given best effects for their expansion.
When you visit magelang city, you will see that hundreds and even thousands of new entrepreneur supply more than thousands unique and good products in good quality spread along magelang's streets and almost in most of places in magelang city.
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