DPD RI Urges Banten Small Business Financing No Longer Hampered by Regulation

Member of the Regional Legislation Affairs Body (BULD) of the DPD RI Ade Yuliasih stressed that small businesses in Banten need financing breakthroughs, not just new regulations. At a Regional Dialogue in Kebon Kubil, Serang City, Tuesday (27/10), she highlighted that the Draft Regional Regulation (Raperda) on the Facilitation, Protection, and Empowerment of Small Businesses must be able to address the capital problems that have long entangled micro-entrepreneurs.

According to Ade, the drafting of regional rules is often constrained because it is not in line with central government policy. She assessed that regulatory harmonization is a prerequisite so that the Raperda does not overlap with higher rules. “The drafting of the Raperda needs to take into account the needs of the community and local content, as well as ensure regulatory alignment. After the regulation is enacted, its implementation must also be monitored so that it truly benefits small business actors,” she said in the forum.

The main issue raised in the discussion was access to financing for micro and small business actors who have limited capital and collateral. Ade assessed that support from financial institutions, including regional banks, still needs to be strengthened. Without it, small business actors will find it difficult to grow their businesses even though a legal umbrella is already available.

Besides financing, the forum discussed a number of technical issues that often become obstacles in the field. From alternative eligibility assessments for financing for young entrepreneurs, alignment of authority between regional apparatuses, the existence of an academic manuscript, to the clarity of incentives and budget support. All of this shows that the small business problem is not singular; it intersects with government governance and regional fiscal capacity.

For Banten, which has a fairly large base of micro and small businesses, financing certainty is crucial. This sector absorbs a lot of labor and serves as a buffer for the local economy. However, without operational regulations and real support from financial institutions, various empowerment programs risk stopping on paper. The DPD RI through BULD seeks to ensure that the Raperda is not only born, but also runs with attached oversight.

The DPD RI's involvement in this dialogue is also part of its legislative and oversight functions. Ade emphasized that after the regulation is enacted, monitoring its implementation is key. She does not want the Raperda to become a legal product that stalls due to a lack of socialization or weak coordination between agencies. The hope is that small business actors in Banten can directly feel the benefits of the ease of doing business, protection, and empowerment promised.

Going forward, the challenge is to ensure that the expansion of access to financing does not stop at rhetoric. Breakthroughs are needed in eligibility assessment schemes, especially for young entrepreneurs who do not yet have a long financial track record. If regional banks and the provincial government are able to translate the mandate of the Raperda into inclusive financing products, small businesses in Banten have the opportunity to move up a class. However, without that, regulatory harmonization will only be a document without impact.