Banks Contribution To Promote sustained, inclusive and sustainable economic growth, and decrease unemployment in Indonesia
Tri Handayani (a*), Lastuti Abubakar (b)
a) Universitas Padjadjaran (UNPAD)
Law Faculty, Kampus Unpad Jatinangor, Jl. Raya Bandung-Sumedang Km. 21 Jatinangor, Kab. Sumedang 45363 Jawa Barat
*tri.handayani[at]unpad.ac.id
b) Law Faculty, Kampus Unpad Jatinangor, Jl. Raya Bandung-Sumedang Km. 21 Jatinangor, Kab. Sumedang 45363 Jawa Barat
Abstract
Banks as creditor and capital lenders are now required to integrate the aspects of the social environment and governance into their main business, so nowadays banks not only manage the reputation and risk but also seek to realize a sustainable business transformation. Banks contribution as institutions can reduce the unemployment rate, which is increasingly rising in every year. Based on this situation the Bank as a source of funding in the economic sector can provide priority scale when it will give a credit to the Micro Small Medium Enterprise (MSME) sector. The MSME sector in several other countries is considered to be able to overcome unemployment, supporting the community to be able to prioritize entrepreneurship in order to create a sustainable business and even better if from the development of MSME businesses also can create job field. Thus the Bank is one of the economic pillars in Indonesia that can contribute to creating inclusive and sustainable economic growth. Based on these conditions, it is necessary to have financial sector policies that need to be reform or create in order to support the realization of an inclusive and sustainable Indonesian economy and to reduce unemployment in every year. Therefore, it is necessary to study further through mapping the regulations regarding banking sector policies in terms of realizing an inclusive and sustainable economy by optimizing the role of MSME. The ultimate goal is that all levels of society have the same opportunity to use banking financial services.
Keywords: Banking, economic inclusive, sustainable, micro small medium enterprise,
Topic: Law