Institutional Analysis of Bank Syariah Mandiri ( BSM ) in Channeling Credit Program for Small Enterprises ( KUR ) at Depok , West Java and Ciputat , South Tangerang

Aims of this case study are to analyze the behavior of BSM related to regulation of KUR, transaction costs and respond of KUR customers. Method of this study is descriptive analysis with reference theory of institutional economics and money lender paradigm. Data is collected by survey with BSM’s customers as a respondent from June to October, 2012. During survey, there are two kinds of interview, namely in-depth interview and questionnaire base interview. The BSM faces two main constraints in implementing KUR program, first, all fund of KUR is from third party (saving and deposit funds) and second, new customers of KUR are mostly unbankable. The results of this research show as follow; first, more than seventy per cent of new customers have income more than two million IDR per month, they are not poorest, second, BSM gives priority to new customers based on the reference of old customers who are a good performance and have an integrity, third, existence of transaction costs is a significant, the cost is around twelve per cent of total financing, fourth, BSM asks a collateral to new customers under amount of financing value in order to make a commitment between bank and customer and to avoid moral hazards, although this collateral is not required in contract. The implication of these results is that KUR program is not open access to poor or needy peoples, and transaction costs and reference system for new customers are becoming obstacles to access BSM. This is a consequence to avoid Non-Performing Financing by implementing prudential policy.


I. INTRODUCTION 1.1. Background Issues
Islamic banking operation based on sharia principles, it is promoting real sector in developing economies.One of the instigators of the real sector, namely the unit of Micro Small and Medium Enterprises (MSMEs), which is currently growing and contributing to the economic development of Indonesia.The government has launched a program of accelerated programs for MSMEs, namely the Credit Program for Small Enterprises/Kredit Usaha Rakyat (KUR), where MSMEs to obtain bank financing facility of KUR dealer appointed by the government.The executing bank that disbursed KUR is BRI Bank, Mandiri Bank, BNI Bank, BTN Bank, Mandiri Sharia Bank, Bukopin Bank, and BNI Sharia Bank.Based on the results of questionnaires and in-depth interviews to customers KUR recipients, both in 40 respondents BSM Depok and 30 respondents BSM Ciputat, can be analyzed differences and similarities in the characteristics of each customer KUR.Here are the results of the comparison: a. Similarities Characteristics of Customers KUR BSM Depok and BSM Ciputat It can be seen from the survey results, the majority of respondents of BSM Depok drawn at random in the study were women with percentages 58%, while men have a share of 28%.And the results of a survey on the BSM Ciputat there are 19 (63%) customers with male gender and 11 (37%) customers a female.However, it can be seen from the actual data, both BSM Depok and BSM Ciputat, the majority of customers are male, whose frequency is more than 50%.
Customers KUR at BSM Depok and at BSM Ciputat are majority working in the field of trading namely, the BSM Depok is 77% and the BSM Ciputat is 33 % as a trader.
In addition, neither the customer BSM Depok nor BSM Ciputat majority last level of education is high school with frequency respectively at 51% and 57%.This indicates that most employers prefer to become entrepreneurs than continuing their education.
b. Differences Characteristics of Customers KUR BSM Depok and BSM Ciputat.
Based on the survey results, the differences between the characteristics of the customer KUR BSM Depok and BSM Ciputat are the income level of customers.At BSM Depok, 67% of respondents have incomes more than Rp 2 million, and there are customers in the special attention.While the BSM Ciputat, 100% of respondents have

International Journal of Academic Research in Business and Social Sciences
December 2013, Vol. 3, No. 12 ISSN: 2222-6990 incomes more than Rp 2 million and no customers in the special attention both to the KUR micro and retail categories.accordance with the principles of a healthy credit, and taking into account the applicable legal provisions, so that no customers were quite bad, just DPK/Dalam Perhatian Khusus (Special Mention) due to delays (Article 4, paragraph 4).e. BSM Depok and BSM Ciputat channel KUR directly to MSMEs-K because it can better know and understand the customer needs, and you can bet right up to the customer so that the appropriate target (Article 4, paragraph 5).f.KUR recipients at BSM Depok and BSM Ciputat are a customer that have a productive business feasible and not bankable, and not being receive working capital and/or investment banking and/or who are not currently receiving credit from the government program as evidenced by the results of the Debtor Information System (Article 5, paragraph 1).g. Micro financing requirements BSM Depok and BSM Ciputat Financing Requirements as stated in Article 5, paragraph 2, the maximum KUR is Rp 500 million and when KUR between Rp 5 million and Rp 500 million, then the margin is 14%.

Cost of KUR Transaction at BSM KCP Nusantara Depok and BSM KC Ciputat
In this study, the components of transaction costs were divided into two groups, namely transaction costs outside the bank and transaction costs in the bank.Outside the bank transaction costs are the costs incurred in the application process KUR customers are not officially recorded by the bank.While transaction costs are the costs incurred bank clients in the application process KUR officially recorded by the bank.
Outside the bank transaction costs include the costs of copying the files needed, transportation costs, administrative costs required documents, and the burden of the cost to the customer for abandoning his efforts to process the application KUR.While transaction costs in bank include the cost of opening a bank passbook, administrative costs, insurance costs, insurance costs insurance, notary fees, stamp duty and registration charges.
The In Table 4.1 we can see that the transaction costs incurred by Ny.Fulan who obtained KUR funds in BSM Depok as much Rp 10,000,000, -is Rp 1,416,881.53.In other words, funds that can actually be used Ny.Fulan as the business capital of Rp 8,583,118.47or Ny.Fulan had to spend Rp 14.168% of the funding limit KUR funds before he gets it.
Meanwhile, from Table 4.2 above calculation can be seen that the transaction costs incurred by Tn.Fulan who obtained KUR funds in BSM Ciputat as much Rp 10,000,000, -is Rp 1,366,881.53.In other words, funds that can actually be used Tn.Fulan as the business capital of Rp 8,633,118.47or Tn.Fulan should be spending at least 13.67% of the funding limit KUR funds before he gets it.
Thus, it can be concluded that the transaction costs for customers KUR BSM Depok and BSM Ciputat not differ much.At BSM Depok cost about 14 168% of the limit KUR funds, while the cost of the BSM Ciputat approximately 13.67% of the limit KUR funds.

Customer Response of BSM Depok and BSM Ciputat Against KUR
In this research, in-depth interviews reveals many aspirations, ideas, thoughts, suggestions and complaints from customers KUR BSM Depok and BSM Ciputat about the KUR program.At the end, the general response from the customer, it can be divided into two parts, namely support for the KUR and complaints for the KUR.a. Support Against KUR Both customers KUR BSM Depok and BSM Ciputat support the KUR program of the government.According to the respondents, the KUR they can develop their business, KUR also allows them to obtain bank financing facility for the KUR, customers can obtain financing exceeds the value of collateral.Respondents also expect the KUR program continue to support the MSME-C in Indonesia.b.Complaints Against KUR Customer KUR BSM Depok and BSM Ciputat in general complained that the KUR ceiling limit less able to meet needs, the government guarantee is not as described by the mass media, and the lack of information KUR from the government.While other complaint are the customer nor the party of BSM Ciputat, according to their KUR retail categories, pricing KUR considered higher margins compared to margins set by conventional banks for non KUR loans.

Acceptance Factors Society Against KUR
In this study the factors of public acceptance to KUR Bank Syariah Mandiri assumed into five variables, among which information KUR procedures, customer perception of the KUR, transaction costs, understanding the value of KUR and understanding Islamic values.In each variable is represented by a few questions.
a. Variable I: Information KUR procedures, with 11 questions: X1 : The idea of launching the KUR program is a good thing X2 : Socialization of information KUR procedure have done well X3 : KUR funds easily accessible to customers through banks that have been appointed by the government X4 : KUR program provides a simple procedure for customers X5 : The amount of loans in accordance with the customer's business needs X6 : Credit schemes offered in accordance with the customer's business needs X7 : Interest rates KUR match the capabilities of return customers X8 : Terms of collateral principal beneficiary customer of KUR ease X9 : The provision of additional collateral by 30% of the customer's credit score burdensome KUR recipients X10 : The process disbursement KUR is relatively quick e. Variable V: Understanding the Value of Sharia, with 5 questions: X1 : I chose Bank Syariah Mandiri as Bank Channel KUR, because BSM based on Islamic principles.X2 : Channeling funds of KUR through Bank Syariah better than other conventional bank.X3 : Islamic Bank has run Islamic Economic principles in KUR funds.X4 : In the billing and collection KUR, BSM has appropriate policies and tolerance of Sharia code of conduct X5 : I was feel serving for the result set by Bank Syariah Mandiri is not burdensome.
The results of questionnaires that have been obtained showing size of the frequency response of the community, which in this case represented by the sample (customers KUR BSM Depok and Ciputat).
Before the questionnaire is used as an instrument in this study, the questionnaire was tested validity and reliability, so that the questions on the questionnaire was believed to be stable in use (valid) and can perform its function as a measurement tool (reliable).Questions on the X1, X2, X3, X7, X8, X9, X11 cannot be used because it does not pass the test of validity and reliability, in other words, the questions are not stable in their use (valid) and cannot perform its function as a measurement tool (reliable ).

a. KUR Procedure Information on BSM Depok and BSM Ciputat
The results of the questionnaire showed that the majority of respondents gave answers agree (indicated by the number 4) on each question.Can also be shown that the highest frequency contained in the question number 4 (X4: KUR program provides a simple procedure for the customer) and question number 10 (X10: The process of relatively rapid disbursement KUR).As noted previously, that in the validity test and reliability test of questions to-4 (X4) is not valid and reliable are used as one of the questions used in this research instrumentation.
In table 4.3 we can know the frequency of the variable perceptions of KUR.The results of the questionnaire showed that there was no statement that dominates (with a frequency ≥ 30).There is only a figure close to 30 which is the statement number 2, with statement I following the KUR program because it can improve my business.Thus, we can know that the customer evaluate KUR program at BSM to improve their business operations.However, because the frequencies that are less than the requirements established in this study, this statement can not be used for further analysis.In this session, all of the statements pass the test of validity and reliability, so that the entire statement can be used as an instrument of research.From the above table we can know the frequency of the variable transaction cost on KUR program.
The results of the questionnaire showed that the majority of respondents disagreed answer (indicated by the number 2).Can also be shown that the highest frequency contained in the question number 3 (X3: I need to pay extra to pay brokers KUR).Validity and reliability of test results showed that all statements in this session entirely valid and reliable so that it can be used as an instrument in this study.At the table 4.11 can we know that the frequency of the variable Understanding Shariah value.The results of the questionnaire showed that the majority of respondents gave answers agree (indicated by the number 4).Can also be shown that the highest frequency contained in item question number 4 (X4: In the billing and collection KUR, BSM has appropriate policies and tolerance of Sharia code of conduct).At the table 4.12, it can be seen that the frequency of the variable Understanding Shariah value.
The results of the questionnaire showed that the majority of respondents gave answers agree (indicated by the number 4).Can also be shown that the highest frequency contained in item question number 3 (X3: Islamic Bank has run Islamic Economic principles in KUR funds.)and item question number 4 (X4: In the billing and collection KUR, BSM has appropriate policies and tolerance of Sharia code of conduct).

Analysis of Correlation Between Independent Variable
Correlation analysis was used to determine the relationship between the independent variables.The independent variables used in this study is that the majority of the statements expressed by customers KUR, the value of the mode with the highest frequency.
With correlation analysis, in addition to knowing the relationship between the independent variables, it shows the significance of relationships between variables.This is the results of the correlation between the independent variables: Table above is known that the coefficient of the many relationships variables, there is only one significant relationship, the correlation between X1 to X2.Where the value is greater than 0.05 probability, probability value Sig (0.05> 0023).X1 with the statement KUR program provides a simple procedure is significant and positive correlation with the X2 with the statement KUR liquefaction process is relatively quick.A positive relationship indicates that the BSM Depok the easier the procedure will be faster disbursement of funds.
With correlation analysis, in addition to knowing the relationship between the independent variables, we can also know the significance of relationships between variables.Here are the results of the correlation between the independent variables: From the table above, it is known that the relationship of the many variables, there are five significant relationships.Significant indication here as written in the description of the table above, which is located below the level of 0.05 (5%).Significant correlations are: correlation between X5 1 to X3 5 for 0.030; X6 1 to X2 5 of 0.00; X6 1 to X3 5 for 0.016; X2 2 with the x1 4 of 0.007 ; and X3 5 to X2 5 of 0.001.

IV. CONCLUSIONS
Based on the analysis and discussion that has been described, there are some conclusions can be drawn as follows:

Similarity
The majority of the customer is a trader, as much as 77% at BSM Depok and BSM Ciputat 33% of KUR Program with the Implementation of the KUR program Transaction costs incurred by the Customer BSM Customer response to the KUR program III. RESULTS AND DISCUSSION Descriptive Analysis of KUR at BSM Depok and BSM Ciputat 1.Comparison of Client Characteristics Receiver KUR Depok KCP BSM and BSM KC Ciputat In implementation the KUR program at Bank Syariah Mandiri KCP Depok and BSM KC Ciputat carried out in accordance with the Regulation of the Minister of Finance No.. 135/PMK.05/2008.This statement can be proven through the proper application of these rules in the operation of KUR Bank Syariah Mandiri in Depok and Ciputat. the following are some applications of rules are: a. BSM Depok and BSM Ciputat have been providing and distributing funds for the KUR (Article 4, paragraph 1).b. BSM Depok and BSM Ciputat implement KUR program at the unit Warung Micro BSM and the administration of Warung Micro BSM separates microfinance they have with KUR (Article 4, paragraph 2).c.BSM Depok and BSM Ciputat channel KUR with right amount and on time according to the program set by the government (Article 4, paragraph 3).d.BSM Depok and BSM Ciputat decided KUR by an assessment of the feasibility of in

-Bank Transactions (1) Rp 40,000.00
following is an example of a cost comparison of customer transactions KUR at BSM Depok and BSM Ciputat:

Table 4 .
2. Details of Transaction Costs for Tn.Fulan

Table 4 .4. Frequency Procedure of KUR BSM Ciputat
In table 4.4 we can know the frequency of the variable information KUR procedures.The results of the questionnaire showed that the majority of respondents gave answers agree (indicated by the number 4) on each question. b.

Table 4 .10. Frequency Understanding The Value of KUR at BSM Ciputat FREQUENCY UNDERSTANDING THE VALUE OF KUR
e.

Table 4 .15. Matrix of SWOT Program KUR BSM KCP Depok dan BSM KC Ciputat
Procedure KUR program that is easy and simple Micro KUR disbursement process fast, between 3 to 7 daysThe interest rate (profit sharing ratio) KUR micro is low There is assistance / mentoring effort on clients Socialization of KUR program uneven Customer fully use the KUR funds as working capital KUR program helps improve the customer's business Customer get KUR information from other BSM customer For customers KUR micro, can apply for a loan KUR back (max 2x) for loans that had previously been paid and are not currently receiving working capital loans from other banks / government The existence of administrative costs People who do not have insurance, can not access KUR KUR program in BSM is not potentially reduce bank profit No credit crunch for KUR BSM has never filed a claim with the credit guarantee institution designated Customer to micro category equally wants the loan value for KUR microraised (can be more than Rp 20 million)Both BSM and BSM Depok Ciputat equally found kafalah certificate issuance process by Askrindo too slow.It is caused due to long queues to obtain a certificate guarantee.The length of the queue caused by the many submissions bank guarantee submitted by the executor KUR www.hrmars.com/journalsNot only customers, but also the BSM both in Depok and in Ciputat wants value for KUR micro loans can be raised (can be more than Rp 20 million) Neither the customer nor the BSM Depok and Ciputat both want the risk of collateral for the KUR micro fully covered by the government as it is advertised by the government in the media Neither the customer nor the BSM Depok and Ciputat wants KUR retail pricing margin to be lowered in order to be competitive with the margin of non-KUR loans offered by other banks For the category of micro KUR there is not charge stamp duty  While for the category of retail KUR there is stamp duty charge