STRATEGIES FOR INCREASING MSME CREDIT GROWTH IN REGIONAL DEVELOPMENT BANKS IN EMERGING COUNTRIES: ANALYTICAL HIERARCHY PROCESS APPROACH

This study aims to develop a strategy to increase credit growth in the Micro, Small and Medium Enterprises (MSME) sector at Regional Development Banks, especially in developing countries by using the analytic hierarchical process (AHP). The sample of this research is Bank DKI (11 clusters) in conducting financing in DKI Jakarta Province. The data used are quarterly with the period January 2014 – December 2018. There are two methods used, namely regression test to determine the factors; and an analytical hierarchical process (AHP) was used to develop the strategy. The results of this study indicate that in order to increase the growth of MSME loans in Regional Development Banks, product marketing strategies are less effective. The strategy that can be implemented by banks is to improve service excellence and Good Corporate Governance excellence. Implementation of service excellence is in the form of ease of applying for credit or providing education to MSMEs on how to manage cash flow and financial reports. As for the implementation of Good Corporate Governance, what can be done is not only fulfilling the function of commissioners and visits, but the principles of GCG must be carried out to the maximum.