Solving Capital Problem in SMEs With Asset-Based Investment Policy

Abstract

Small and Medium Business (SMEs) products in Indonesia have low competitiveness. This happens because of the constraints faced by SMEs to gain access to capital, thus adversely affect the ability of SMEs to develop a business. Asset-Based investment policy is a form of policy that can help SMEs overcoming the problem of capital. Asset-based investment program policy is one method of growing investment in developed countries to empower low-income communities. This paper aims to provide an implementation of asset-based investment policy concept in Indonesia as a solution to capital problem experienced by SMEs. The method used in this paper is a qualitative method with a literature review perspective. The results indicate that the asset-based investment policy through individual development accounts scheme can be used by the government to provide assistance for SMEs, where the aid can be more productive compared with Bantuan Langsung Sementara Masyarakat(BLSM).