GERBANG SERASAN (Development Movement Through Community Empowerment in Serasan Sekundang)  To Empower UMKM (Micro-, Small, Medium Businesses and Cooperatives) in the Regency of Muara Enim, South Sumatera Province, Indonesia

GERBANG SERASAN (Gerakan Pembangunan di Serasan Sekundang) is a Strategic Program of Muara Enim Regency Government in an effort to empower people and increase their income and prosperity. Some concrete outputs of the innovation are empowerment of 3,828 UMKMKs and increase participants’ income by an average of 59%.   The innovation can be used as one of poverty reduction program at national level.

In Indonesia there are around 57 million UMKMKs (UMKMK= Usaha Mikro, Kecil, Menengah dan Koperasi/ micro, small, medium businesses, and cooperative) and 212 thousand cooperatives that play an important role in contributing to economic sector such as providing employment, reducing poverty and spurring economic growth. Statistical data showed that UMKMK contributed up to 56 percent to Gross Domestic Product (GDP) in 2013. This significant figure attracted government special attention for UMKMK empowerment.

Based on BPS (The Central Bureau of Statistics) data of 2016,  the number of UMKM in the Regency of Muara Enim reached 4.123 units and Cooperatives reached 481 units. The main obstacle faced by UMKMK in Muara Enim Regency is capital problem. Most of them do not have adequate access to banking. Even if there is already access to banking, small micro businesses can not afford to apply for credit because commercial bank interest is relatively high for their business. Many of them still rely on street credit providers known as loan sharks. With this condition it is difficult for them to expand their business. So generally they run the business, but they can not improve their welfare. The condition that has lasted for many years has resulted in many of them - especially micro and small enterprises - living below the poverty line. The situation gives an impression as if "the state is not present" to solve UMKMK problems.

To deal with the problem, the Government of Muara Enim Regency has made a breakthrough through GERBANG SERASAN: Development Movement through Community Empowerment for Micro, Small, Medium Businesses and Cooperatives (UMKMK/ MSME&C). Head of Regency stipulated decree No. 6/ 2001 to do so.  Through this program, Muara Enim Regency Government keeps funds of Local Budget and Expenditure in the form of Frozen Giro at Implementing Bank as Credit Guarantee. The Executing Bank issues special credit to UMKMK with low interest and guaranteed by Muara Enim Government.

Although the program had been running well but based on the audit result of the Supreme Audit Board, this program should not be continued because Government Regulation Number 54/2005 does not allow government to guarantee Third Party (including UMKMK) in the banking credit distribution. 

In line with the spirit of innovation, the Government of Muara Enim improved and adjusted the concept of GERBANG SERASAN.

In new pattern of GERBANG SERASAN, Muara Enim Regency Government no longer keeps Local Funds as UMKMK Credit Guarantee but is conducted as follows:

  1. Optimize existing banking credit schemes
  2. Subsidize lending rates and insurance premiums to UMKMK
  3. Provide KKMB (Bank Partner Financial Consultant) as a partner of UMKMK in relation to banking credit
  4. Providing Secretariat of GERBANG SERASAN as home base for UMKMK

The new pattern of GERBANG SERASAN is a breakthrough and innovative program of Muara Enim government, among others demonstrated by :

  • Strengthening the capital of UMKMK through cooperation with banks in distributing bank credit to UMKMK with interest credit subsidy and insurance premium from Muara Enim Government. Thus, UMKMK will get subsidized banking credit so it can assist business development and welfare improvement of UMKMK.
  • Providing and optimizing KKMB as a partner of UMKMK. Thus, UMKMK can be bridged in access to banking, assisted in the preparation of credit proposals, monitoring of credit repayments, and other consultations.
  • Establish GERBANG SERASAN Secretariat   that will carry out, monitor, evaluate, and report the activities, as well as the House for UMKMK.  The Secretariat has an office with special employees and KKMB that are ready to respond to the needs of UMKMK. Thus the Secretariat also functions as a house of UMKMK in Muara Enim Regency. The secretariat becomes a place to ask questions, place to complain, and place to consult, and partners for UMKMK in their business. In other words the House of UMKMK not only functions as a social house but also as a business house.

The solution started from a staff meeting led by the Regent of Muara Enim and attended by the Vice Regent, Local Secretary, Assistant, and Head of Local Offices within the Regency Government to discuss many public complaints about UMKMK, especially UMKMK capital issues, and at the same time discussing problem-solving ideas originating from the Regent.

It is then followed by Focus Group Discussion (FGD) attended also by Community and Religious Figures, Sriwijaya University (UNSRI), Non-Governmental Organizations (NGO) and Banks (including  Bank Indonesia, Palembang) in which the concept of GERBANG SERASAN program is agreed upon.

Innovative steps in GERBANG SERASAN program that will be carried out to solve problems :

      1. The Old System of GERBANG SERASAN (2001-2007)

  • The Government of Muara Enim holds cooperation with Executing Banks (Bank Rakyat Indonesia and Bank Sumsel Babel) under facilitation of Bank Indonesia Palembang.
  • The Government of Muara Enim provides regional budget (APBD) funds that are kept in the form of freezed giro at Executing Bank as UMKMK credit guarantee.
  • The Executing Bank disburses special credit with low interest to UMKMK recommended by  Government of Muara Enim with credit guarantee from local budget funds that are kept in the form of freezed giro.
  • In the event of congestion or delinquency of credit repayment, the Executing Bank will deduct the Muara Enim Government guarantee money.
  • The Government of Muara Enim through BAPPEDA (Development Planning Agency at Sub-National Level) and Technical Local Offices conduct counseling and monitor its implementation.

      2. The New System of GERBANG SERASAN (2008-now)

  • The Government of Muara Enim makes a new cooperation with Executing Banks (Bank Rakyat Indonesia and Bank Sumsel Babel) facilitated by Bank Indonesia Palembang regarding New Pattern of GERBANG SERASAN credit distribution to UMKMK.
  • Credit distribution to UMKMK is done by optimizing existing bank credits (KUR Mikro, KUR Ritel, KUPEDES, KUKPEDES-GS, and KUM-GS).
  • The Government of Muara Enim provides subsidized credit interest and insurance premium for UMKMK.
  • The Government of Muara Enim provides KKMB (Bank Partner Financial Consultant) as UMKMK advisors in banking affairs. Nowadays there are 10 KKMBs who help the implementation of GERBANG SERASAN Program.
  • The Government of Muara Enim provides GERBANG SERASAN Secretariat that implements, monitors, evaluates and reports the implementation of GERBANG SERASAN activities and at the same time functions as an UMKMK HOUSE.
  • UMKMK House functions as a place for seeking answer for their problems, consultations, partner meeting, coordination and others.

Through GERBANG SERASAN innovation program, UMKMK especially micro and small business and cooperative can be assisted by strengthening capital through subsidized credit so that they could develop their business and improve their prosperity. GERBANG SERASAN innovation program is also an effort to provide employment and poverty reduction in Muara Enim Regency, and prepare UMKMK to be able to compete in national and global level.

Resources used are :

      1. Financial Resources

Financial resources are derived from local government budget (APBD) and banking funds. Muara Enim local budget used to finance the Secretariat of GERBANG SERASAN average cost US$ 59.768 per year. Subsidy for credit interest   and insurance premium from  2009 - 2016 amounted US$ 1.091.020  while the GERBANG SERASAN credit realization from Bank Sumsel Babel and Bank Rakyat Indonesia in the amount of US$ 9.778.446 that was allocated   for 3.828 UMKMs.

      2. Human Resources

Human resources that support the implementation of this program are Partner Bank Financial Consultant (KKMB), GERBANG SERASAN Secretariat, Banking and Government.

      3. Other resources

Other resources which are also important to boost growth and for the implementation of the iniative are commitment, political support, networking, consistency and conducive situation that make the innovation of GERBANG SERASAN Program go well to date.



The main benefit of GERBANG SERASAN innovation program as follows:

1. The government  is "present" to overcome UMKMK problems.

  • Before the implementation of GERBANG SERASAN, most UMKMK do not have access to banking. If any, generally UMKMK is not able to take loan because the commercial bank interest rate will not reasonable for small micro enterprises. On the other hand they have to maintain their small business. Eventually, many of the them fall into the hand of moneylenders. Loan interest from moneylenders is 10-15 % per month. This condition is very heartbreaking, the poor who seek to live are getting poor.
  • After the implementation, UMKMKs have access to banks and can get credit with a low interest (subsidized) so that they can develop their businesses. Collaterals are also not needed for certain credit scheme. In other words the regional government is present and ready to help empower UMKMK in running their businesses and develop them. From 2009 to 2016 the program was able to empower 3.828 UMKMK by strengthening their capital through GERBANG SERASAN credit scheme up to US$ 9.778.446 in value.

2. The presence of UMKMK House to be the place for UMKMK seeking answers of their problems, consultations and also suggestions to start their new businesses and or develop their businesses, meet partners and develop the marketing of their products. UMKMK House is not only a place for social activities but also a business house because it is completed with WiFi free of charge, computers, printers and a room to meet with partners. In the future it will also be completed with E-Commerce for UMKMK.

3. Evaluation on the implementation of GERBANG SERASAN program in 2009-2015 conducted by Bina Darma University Palembang shows the following results:

  • GERBANG SERASAN credit mostly distributed by Bank Rakyat Indonesia at 88% and Bank Sumsel Babel only 22%.
  • The business sector that receives most credit is the trade sector reaching 63%.
  • The business sector that increased the number of workers after obtaining credit were 47% of trade sector and plantation sector by 33%.
  • There is an increase of UMKM income after becoming GERBANG SERASAN participants. Increased revenue of less than 50% experienced by 60% UMKM increase of revenue of 50% to 100% enjoyed by 26% UMKM and an increase of more than 100% enjoyed by 14% UMKM. In general the average increase of income of UMKM after becoming GERBANG SERASAN  was 59%.
  • The creation of other businesses of up to 33% is the impact of GERBANG SERASAN program. So it means new businesses have been created for UMKMK.

4. The success of UMKMK empowerment through the provision of capital strengthening credits was able to contribute in increasing the role of service sector in GRDP of Muara Enim Regency, and assisting the decreasing of poverty level. The contribution of GRDP from the non-oil services sector in Muara Enim regency in 2008 reached Rp.9.7 trillion and in 2015 reached Rp 36.6 trillion or increased by 277,5%.



The partnership between the Local Government and Banks is the right choice as the parties directly involved in the implementation of GERBANG SERASAN program. Each party has their respective roles which are:

1. Government

Provide budget from APBD for the operations of the GERBANG SERASAN Secretariat, empowerment Partner Bank Financial Consultant (KKMB) as well as interest rate subsidies and insurance premiums.

2. Banking

Distribute credit to UMKMK by optimizing the existing bank credit (KUR Mikro, KUR Retail, KUPEDES, KUKPEDES-GS, KUM-GS).

UMKMKs get assistance in improving the capability of capital, business development and stabilization of economic business institutions through facilitation of access to banking provided by Local Government through KKMB. This increase in capital capability can accelerate efforts to reduce the number of poor people.

The basic idea of refining the concept of GERBANG SERASAN comes directly from the Regent of Muara Enim. Furthermore, the Head of Animal Husbandry and Fishery Service Office was asked to prepare the concept of improving GERBANG SERASAN and conduct coordination and FGD with Bank Indonesia Palembang team, Bank Sumsel Babel team, and Bank Rakyat Indonesia team. So that the concept (new pattern) of GERBANG SERASAN was agreed.

The signing of the cooperation agreement is done by the Regent of Muara Enim Regency, the Head of  Regional Office of Bank Rakyat Indonesia Palembang, the Directors of Bank Sumsel Babel, Head by the Chairman of the Muara Ening Legislative Assembly and Witnessed by South Sumatra Deputy Governor.

GERBANG SERASAN is implemented by Secretariat headed by Head of Secretariat and General Affairs assisted by head of UMKM Development Section and KKMB Empowerment Section. The implementation of GERBANG SERASAN is fully supported  by KKMB and monitored by Coordination Forum involving relevant Local Offices which is led by Local Secretary.



Challenges being faced in the implementation are among others:

  1. At the beginning of the activity, the obstacle faced is the lack of UMKMK data base so that at beginning it is difficult to get the participants. In solving this problem, KKMB intensive conduct socialization to the village or sub-Regency.
  2. There is “silent resistance” from loan sharks who threaten UMKMK to join GERBANG SERASAN. To deal with it KKMB approaches UMKMK individually to explain the benefit of GERBANG SERASAN program.
  3. Different perceptions of each Leader of the Executing Bank so that every change of the executive bank's leadership, Secretariat GERBANG SERASAN needs to re-explain
  4. Some UMKMK do not meet bank requirements, but they force to get GERBANG SERASAN credit. To overcome the problem, explanation is done transparently regarding the requirements to get GERBANG SERASAN credit.

Lessons that can be taken from the success of innovation program are among others:

  1. State is present in the midst of society's problems.
  2. The success of GERBANG SERASAN innovation program benefits UMKMK because they can promote their products at the local, regional, and national market. This condition has beneficial effect  for UMKMK  because they can be known at the national level.
  3. The success of the program is determined by the commitment, support and consistency of the Head of Region, Local Legislature Leadership, Head of Related Local Offices, and Community Leaders, Banking, NGOs and Universities, in addition to good coordination and sincerity from the implementers in the field.
  4. The high level of public participation especially UMKMK in the implementation of this program is a legitimacy of increasing public trust to the government.

The issuance of the innovation policy of the GERBANG SERASAN program shows that the Muara Enim Regency Government is serious, caring and responsible in solving the main problem faced by UMKMK that has difficulty to get the easy and cheap capital in growing its business. This policy is part of the government's responsibility to improve the quantity and quality of public services. In this case the Government "presents" in finding the best solution for the problems faced by UMKMK.

Formulation of policy innovation program, policy implementation, monitoring and evaluation which is carried out strictly, accountable and sustainable demonstrates strong commitment of Muara Enim government in empowering UMKMK in order to decreasing poverty rate and increasing UMKMK competitiveness in national and global level.

Commitment and concrete steps in formulation, implementation and monitoring GERBANG SERASAN policy from Muara Enim Government is an effort to strengthen government integrity in improving public service quality in region.


The potential for the innovation to be replicated to address similar or common problems in government

  1. Innovation program is developed through the establishment of Bank Perkreditan Rakyat regional company (PD BPR) GERBANG SERASAN on December 5,2016. BPR GERBANG SERASAN is expected to increase the number and scope of UMKMK that can receive bank credit for capital strengthening. So that the number of empowered UMKMK will increase and contribute more in reducing poverty rate.
  2. Muara Enim has become the target of comparative study, learning center for other regencies and cities in South Sumatra so that it is not impossible for the regencies and cities to replicate GERBANG SERASAN innovation program with pattern being adjusted to their condition and capability.
  3. Muara Enim’s UMKMK House that has functioned as a house of business for UMKMK will be equipped with an e-commerce technology in 2017 which is useful for UMKMK in marketizing  the products and expanding their businesses in national and global level.

It's just recommendations for the future:

  1. GERBANG SERASAN could be one of references and or inspirations for the development of similar programs in other regions. Particularly in the cooperation of the Local Government with Banking, subsidizing lending rates and insurance premiums, providing KKMB, making the Secretariat as the House of UMKMK, and the sustainability of the program. Commitment, support, consistency, cooperation and good coordination as well as sincerity in implementing the program are the key success of the program.
  2. UMKMK House is very helpful and useful for UMKMK in gaining better access to banking, business partners, and management development of UMKMK in order to compete in the local, regional, national, and global market.
  3. Gerbang Serasan innovation Program can be scaled up as a poverty reduction program at national level.

  • 07-09-2017 09:27 am

  • Oleh Admin

  • Dibaca 2635 Kali