SEGUIMIENTO DE LOS NIÑOS CON EC POTENCIAL Y CON

M. Roesli

_{, Achmad Daeng GS}

_{, Odiek Rusdiadi}

_{, M. Hidayat}

E-mail: [email protected]

2,_{45 University Surabaya} E-mail: [email protected]

Abstract. This study aims at the implementation of the provision of revolving fund PNPMMP, any obstacles

encountered in the implementation process of granting revolving fund, how the settlement of non-performing loans on a revolving fund PNPMMP terms of credit agreement law and legal guarantees. The method used in this research is normative and descriptive empirical jurisdiction, said the legislation relating to the implementation of the community which is the object of research. Lending through some stage of the loan application stage, the stage of the examination, the decision stage, and the stage of realization of the loan. This revolving fund into the general constraints the lending process as revolving fund in noncurrent become non-performing loans due to defaults KSM substandard due to the debtor's business, one of the members of KSM did not make installment payments of the loan, not the implementation of joint responsibility. Completion of nonperformance loans resolved by consensus and through three approaches to collect arrears, rescue troubled loans(rescheduling,reconditioning and restructuring)and charge through legal channels.

Keywords: Nonperforming loans, revolving funds, PNPMMP I. INTRODUCTION

Indonesia is an emerging country that is constantly doing development in all fields. Development is being actively carried out currently covers all aspects of life which are essentially aimed to improving the economy and well-being in society, as stipulated in the 1945 Constitution in fourth paragraph. These efforts of improvement can not be separated from the fact that Indonesia which still has problems of poverty and unemployment, which increasingly growing. Poverty is nation's problems urgently and requires countermeasures and systematic, integrated and comprehensive approaches in order to reduce the burden and meet the fundamental rights of citizens feasibly through the inclusive, equitable, and sustainable development to create the prestige life.

Community Self-Supporting (LKM) is a nonprofit organization, but LKM has a Financial Management Unit (UPK) that aimed to obtaining profits to support the main mission of LKM that is to alleviate poverty by providing “revolving loan” that can be used to increase the poor incomes. The government creates a program to support LKM mission in its management that is to reduce poverty called “revolving fund” which is one of the National Program for Urban Self- Community Empowerment (PNPMMP). This Revolving Fund Loan is to reduce poverty by empowering communities through economic activity that is lending a micro scale to the

poorcommunities in the villages where LKM/UPK are existing by the terms and conditions that have been set.

In the provision of revolving loans to the poor societies through Community Self-Supporting Groups (KSM), the communities themselves who decide whether to use the revolving loan activities in poverty reduction programs. The determining of revolving loan activities to poor communities is decided by the community through Community Self- Supporting Institute (LKM). Implementation of revolving fund lending to the communities can only meet the criteria of good management, and right on target, if the implementationsare goin accordance with the provisions and expectations of P2KP especially Urban PNPM.

LITERATUR REVIEW

The implementation process of the provision of revolving fund on a self-supporting PNPM provides financial resources through revolving funds and micro-credit to develop the economic activities of the poor communities. Revolving loans must be used for the productive concerns that can increase their income and or welfare. The various types of businesses, causing a variety of the need for funds and the ability to develop the business is also different in each Community Self- Supporting Groups (KSM). In provision of this revolvingloan credit, the credit agreement becomes the important and fundamental things. Before performing the credit agreement, it is made the agreement firstly, because the agreement is a binding agreement of two or more parties that arranged by the in forced laws.

So it called the engagement, in which must be executed or fulfilled by the performance of the debtor parties. Credit agreement is a consensual agreement between the debtor and creditor who delivered debt and accounts payable relationship, where the debtor is obliged to repay loans granted by creditor on the basis of the terms and conditions agreed by the parties. Therefore, by the revolving credit agreement between BKM/UPK and KSM then engagement arises that have consequences or legal relationship created by the parties until they have legal consequences in the form of rights and obligations as a result of an agreement that would be binding on the BKM/UPK parties which provides loans and KSM as a debtor.

As the credit loan agreement, this revolving funds resulting obligation of repayment in the form of installments yielding from the business conducted by each member of the KSM group with the determined term so it can be revolved to other group of KSM that have proposed funding for loans to BKM/UPK.

A valid agreement means an agreement which qualifies predetermined legislation, so that is recognized by law. In Article 1320 of Civil Code, mentioned the provisions on the validity of the terms of agreement are as follows:

There are consent agreements between the parties who make an agreement (consensus).

There are capabilities of parties to make agreements (capacity).

There is a certain subject matter. There is a halal reason.

The loan agreement between KSM and BKM/UPK if assessed through the requirements of the treaty validity are having fulfilled the elements of the agreement contained in the Article 1320 of Civil Code:

a. Agreed they were bound themselves

The point is that the agreement/consensual. The credit agreements in PNPM program is based on an agreement between both parties that are BKM as creditor and the members of KSM as debtor.

b. Capable to make anagreement

Capability to make an agreement, or not under supervision or because the law they are not prohibited to make arrangements. The both parties in this agreement that are BKM and KSM have no obstacle to make an agreement. Subjects in this agreement are the debtor that is KSM and creditors that is BKM which are bounded in this agreement are have been equally have the legal capability to perform a legal act that is to making an agreement and there is no restriction of any party to KSM and BKM to conduct an agreement..

c. A certainmatter

In an agreement the agreement performance object are clear, what, how much and how. This agreement is an agreement between a creditor (KSM) and the debtor (BKM) that made clearly that is the agreement has provisions concerning the type of business that is clearly done with the clearly process and procedures, loan amount in rupiah is clearly available, there are ways of loans repayment as the obligations and the others.

d. A halal reason

Purpose of the agreement is not intended for deception or for certain crimes. The agreement between KSM and BKM

has the goal to help improve the poor economy, and used for purposes that are not against to the law (not for crimes).

In revolving credit agreement of PNPM MP in an affidavit of KSM there is also a statement about the ability of joint responsibility between the members of KSM that mention “agreed to implement a joint responsibility (joint responsibility for other member if they are not able or do not have a good faith) to pay installments to UPK, which means in relation to the fulfillment of Article 1282 of the Civil Code that “there is no engagement is considered to be joint responsibility, but if it is explicitly stated.”

PHASESOF PREPARATION, IMPLEMENTATION AND TERMINATION

This preparation phase does not stand alone but rather parallel and integrated with the preparatory steps undertaken by the program:

1. It was starting with the implementation of the concept of how the delivery of a revolving loan in various workshops/orientation, both at the national, provincial, district/city and sub-district/village levels. This is aims to achieve a common perception/understanding of the actors in the concept of a revolving loan program.

2. Then identify the needs of revolving loans, feasibility testing for the LKM/UPK, KSM, members.

3. After the actors have met the feasibility criteria then conducted orientation training program of revolving loans to LKM to get readiness to implement revolving loan program.

4. Holdingbasic training of revolving loan bookkeeping and supervision to supervisors UPK, basic training in the management of revolving loan for prospective managers of UPK and UPK officer, as well as basic training and simple bookkeeping of revolving loans to KSM as the loan recipients.

While the implementation phase of the revolving loan activities can be started after various strategic steps in the preparation stage were done. The process of the implementation phase:

1. It was starting with the guidance of KSM members in identifying and developing business plans.

2. Guidance to prepare proposals based on a plan.

3. Motivating and mobilizing member savings according to their ability and put it in a bank or financial institution nearby.

4. Feasibility analysis of KSM and loan proposals of KSM accordance with the principles and basic rules in revolving loans to determine whether the loan is approved or not, for the loans that has already approved then it progressing to the realization of the loan to the KSM with the loan agreement. Revolving loan that has been carried out are accounted for by UPK through accounting and reporting in accordance revolving loan accounting system followed by the monitoring and supervision of loan utilization. Reports of progress on the implementation of revolving loan areconsistent with Regional Management Consultants and the National Management Consultant.

In the termination stage it does not mean that it conducted before the program ends, but it has an inherent strategy in every step of the preparation, implementation and towards to the end of program. The process of termination stage activities

are related to the development of cooperation network with external resources of NGOs, universities, individuals, businesses, banks, offices and others who have the ability and awareness in micro-business development, micro-finance and revolving loans. Granting of revolving loan has a prime target for poor households (low-income) in the territory of the urban/rural where LKM/UPK located. The indicators of the achievement of these objectives are including:

1. The debtors are come from poor households that have been identified in the Medium Term Development of Poverty Reduction Program.

2. Minimum 30% of debtors are women

3. The debtors of such households have been incorporated in the Community Self-Supporting Groups (KSM) that consisting at least 5 peoples.

4. Access to loan of KSM that has repayment in good performance are ensured its sustainability both through BKM and through phase of channeling proceeds with clear lending policy.

In accordance with the principle of credit in general, the revolving loan credit of UPK also examine the feasibility of KSM, seeking information and perform analysis of each KSM members based on 5C (character, condition, capacity, capital, and collateral)

a. Character

Characters of prospective debtor seek by request information to neighbors and local village officials.

b. Condition

Business conditions of prospective debtors, whether it will new stand, or it was already established, it contrary to the law, decency and morality or not. The competitors are strong enough or not. Possibility able to compete or not. Thus it can be seen the possibility of the continuation of the business. c. Capacity

The ability of business to make a profit. How do the sales, how the basic price, how much profit/gains in the business cycle, how many family living expenses, how much net profit, and what percentage of their business improvement plan. d. Capital

How much capital is owned, what debts are covered, and how net capital existing in the business.

e. Collateral

In the revolving fund is not allowed material collateral, which is the only form of collateral are joint responsibility savings.

Obstacles that encountered in the implementation process of granting loans to the revolving fund of PNPM because in practice whether intentional or not, the credit recipient community as KSM (community self-supporting groups) are in default so that the PNPM hard to negotiate loan repayment installments. The incapability of the debtor in revolving loans that are the community self-supporting groups (KSM) in completing and returning the loan can be classified as a default. Default is a situation where a debtor does not meet or does not implement the performance as stipulated in an agreement.

Default due to the breaking of debtors' businesses are affected by various factors, that are the conducted business is not enough profit to repay the loan, the use of loan money for

other needs or one of the members of KSM did not pay the loan installments.

Based on the credit agreement in this case BKM does not apply analysis of the appraisal to all members of KSM that have been doing a credit agreement because the credit agreement is based on trust and character recognition of KSM prospective members. This is also the underlying causes of problems in the revolving fund. Therefore the majority of users of credit are tied to an agreement without collaterals; this is what led to the occurrence of defaults.

In the existing credit agreement in this KSM has stated clearly that there is a written statement of joint responsibility among group members of KSM, as mentioned above that the joint responsibility savings are considered as collateral in this revolving loan fund, but in the case of KSM that has formed from different stand-alone business the joint responsibility has a different sense, although it has been agreed separately that these credits is joint responsibility agreement between the members of KSM. But the existing notion in this case that is when one member of KSM in default then the other group members of KSM especially the group leader of KSM help to remind and collect fulfillment of accomplishment to the members of the KSM who are in default. So that in practice in case of nonperforming loans could not be completed and just wait until KSM able to repay the loan.

In fact the weakness of loans through government programs without using the guarantee/collateral are need optimal assistances, moreover the targets are the poor households which mostly have low level of human resources so they are easily affected by the issue/incorrect information, for example, many people are affected by the negative issues so that they have principles that loan through PNPM is a grant by the government and does not need to be returned.

Loans that can not be restored within a predetermined time causing the revolving of fund becomestopped and community groups who want to borrow have to wait to get a loan. It is becoming common obstacles in the implementation process so that the revolving fund credit loan is said to be a nonperforming loan credit.

The completions of nonperforming loans on revolving fund loan of PNPMMP are viewed in terms of credit agreement law and guarantees law. Provisions of completion in case of nonperforming loans have been set in the guidelines for the implementation of revolving loan which is as follows: Completion of nonperforming loan/credit can be solved through three approaches, which are:

a. Collect arrears

Collect arrears are efforts to resolve nonperforming loans by visiting collections to the defaulted debtors. Stages of completion of nonperforming loans with arrears collections are:

1. Clerks, Officers of UPK must administer loans in an orderly and correctly so it is easily known the data of defaulted debtors and amounts of arrears.

2. Officers of UPK in every month-end must make a list of KSM/members that have arrears and make final plans for collection.

3. Officers of UPK then create a work plan to collect arrears to the KSM to be carried out every working day of the week.

4. Collection visit activity

5. Make priorities scale of collection visit. Priorities scale of visits based on: KSM/ members that was newly defaulted, KSM/members that on a previous visit promises to pay, KSM/members that have lessarrears and there is possibility to pay, KSM/members that have more enough arrears but the business is still exist, KSM/members that have more enough arrears and the location is closely to the UPK and easy to reach and KSM/members that have more enough arrears and the location is quite far.

6. Visit implementation

Visits to the defaultedKSM are carried out by officers of UPK and or teams (twos and threes, for example: UPK officer with LKM and local volunteers, UPK with RT/RW, UPK with officials Village).

7. Record the results of the visit. UPK officer must record the results of his visit whether the default KSM are pay or only promised to pay.

8. Inform defaulters promise to the volunteers. UPK officer inform to the volunteers for the defaulters promise to be asked for help to remind defaulters in order to keep their promises.

9. Revisit.On the promised date UPK officer shall revisit defaulters KSM to collect his promises.

10. Gives Warning Letter. After the second visit conducted and still not yielding results (still to promise), then the defaulters KSM were given a warning letter (SP) which contain the defaulters to complete the payment.

SP I: given in together with the third visit of collection SP II: given two weeks after SP I was given

SP III: given two weeks after SP II was given

11. Involve officials’village. At the time giving SP III it can also be accompanied by village officials to collect. SP III in addition to containing a final warning in order to make installment payments of loans, and also contains a warning that if within one week not also pay in installments, then the savings will be used as a joint responsibility installments.

12. Pay out join-responsibility savings.Pay out joint- responsibility savings (both of cash and books transfer) is based on a clause in the Loan Agreement, by utilizing the control over letter to pay out join-responsibility savings in the event of arrears.

13. Completion of arrears by the Special Team of Arrears Collection.Arrears collection in addition to be done by officers UPK it can also be done by forming a special team to collect arrears with the following steps: a). Forming Arrears Collection Team. LKM together with the community to form a team to collect arrears and then make a decision letter that the working periods of the team are adjusted to the size of the arrears and the existing problems. When the team formation needed the funds to support the activities it is necessary to mention the amount and the sources. b). Debriefing to the team by the facilitator.

The completion of defaults can be done by BKM to take