40 MANAGEMENT OF BANK LOANS FOR MICRO, SMALL AND MEDIUM-SIZED MARKETING PERSPECTIVE AND IN TERMS OF LEGALITY IN ITS DISTRIBUTION AND ITS IMPACT ON ECONOMIC DEVELOPMENT AND LABOR ABSORPTION Sampurno Wibowo Agus Maolana Hidayat H M Yahya Arwiyah Abstract This study focuses on the development value of sales, labor on ict companies in Bandung, the output value of industry sector and subsector telecommunications equipment industry, exports of communications including communications telecommunications equipment industry, as well as economic development, employment and bank lending in the form of small and medium-sized micro-credit for the years 2000 - 2008 to kabupatenkota in West Java province. Results obtained bank loan facilities for the industrial sector and the inflation rate together to have a significant impact on employment in West Java, on changes in bank lending as a whole no significant influence on the change of value of output and employment in the industry as a whole and telecommunications equipment industry, exports of communications and telecommunications equipment communications in western Java, while the UMKM loans to agriculture, mining, processing industry, trade, hotels and restaurants, transport and communication co, construction, service businesses, community social services, and other sectors together have a significant effect on employment in western Java. So that banking institutions should give greater credit to sectors of the productive economy, and have a wider effect multipier between sectors, so the increase in credit for UMKM will positively impact employment in west Java, so does the local government to provide certainty law for licensing services, transparency, and lower cost, especially for UMKM to various economic sectors in western Java. Keyword : Bank Credit, Small and Micro Puff, Economic Growth, Labor Absorption. Introduction West Java as the most populous province in Indonesia has a variety of problems related to welfare. Increasingly complex range of problems because of well-being depends heavily on the real condition of the economy that can not be separated from the micro-economic issues such as relationship lending, banks and companies as business entities in general. In the local regulation No. 1 of 2003 on Basic Pattern of Regional International Journal of Education Vol. 5, No. 1, November 2010, 40-59 Sampurno Wibowo,dkk., Management of Bank Loans 41 Development of West Java, determined that the vision of West Java which is “By Faith and Piety West Java Province in Indonesia and advanced pole for the State Capital Partners 2010”. Furthermore, in Local No. 1 of 2004 concerning the Government’s Strategic Plan 2003-2008 of West Java Province, Provincial governments set the vision that is west of Java Acceleration To SupportCommunity Improvement welfare Achieving Vision West Java Year 2010. Over the last few years the pattern of sectoral growth show wide gaps that still tends tothe real sector and non-real. Relative growth of real sector growth under the banking sector and financial institutions Seeing the conditions of economic Performance in WestJava, anticipated improvements needed to generate the real sector.One effort is to create an investment climate that is conducive in the real sector, which in turn can balance economic growth in all sectors. In general, a growing area can not be separated from sources of Investment Financing that is still dominated by bank lending. Thus, if the slow disbursement of bank credit is feared to be one cause of slow driving engine of regional economic growth, including West Java Province. In addition, the availability of lending capacity banks will determine the ability of banks in lending Some economists argue that, declining lending can be caused by credit crunch which cause the phenomenon credit rationing, so that a decline in credit supply side constraint, but it can also be caused by demand side constaint. The greatest hope for banks, and economic actors are tersalurkannya third party fundsin the right place, to the bank must have good credit management as viewed from the marketing anddistribution of legality. Field of UMKM are the real sector economic actors who are in need of a helping aid in the form of bank kerdit. Business field they work at UMKM is very diverse ranging from the service industry sector,Manufacturing and telecommunications. In all these sectors absorbed the labor and have an effect on the wheels of the economythat hinted at the same time economic growth. Often the question arises that although Indonesia’s economic growth as in 2008 is stillpositive and above 5% but why are still many unemployed and poor people?. The answer is growth that occurs is not a quality growth. To achieve quality growth there needs to be investment and exports. Bencivenga and Smith (1991), develop a model where individuals face the uncertainty of future liquidity needs. Individuals can choose the invest ment in liquid assets and are not at risk, but have low levels of productivity, and / or choosing investments in illiquid assets and risk, but has a high productivity level. Based on the financial sector can promote economic growth by channeling savings intoprojects that have a high productivity level and at the same time to reduce the liquidity risk faced by individual. Research Objectives This study intends to empirically obtain a precise and clear about 42 International Journal of Education, Vol. 5, No. 1, November 2010 the phenomenon ofmicro-credit management role of small and medium enterprises for economic development and labor absorption. The purpose of this study are: 1. To determine the effect of bank credit against the sales turnover and employment in ICT firms in Bandung? 2. To determine the effect of the banking industry credit to the value of output and employment in the industrial sector, as well as telecommunications equipment industry subsector, as well as the export value of the telecommunications equipment industrysub sector in West Java? 3. To know the management of bank credit for Micro, Small and Medium Enterprises inWest Java? 4. To determine the legality of marketing and distribution of bank credit for Micro, Small and Medium Enterprises in West Java? 5. To determine the role of bank lending (commercial banks and rural banks) according to type of use for economic development and labor absorption in the Province of West Java? 6. To determine the role of bank lending (commercial banks and rural banks) according to the scale for the absorption of labor in West Java? 7. To determine the role of bank lending (commercial banks and rural banks) according to the field of business / economic sector for economic development and labor absorption in the Province of West Java? The Bank is the main business of financial Institutions providing credit and providing services in payment traffic and circulation of money. While the definition of commercial banks are banks that collect funds, especially to receive deposits in current accounts and deposits and in its efforts to provide short-termcredit. In-Specific bank can serve as: (i) the agent of the trust, which is the main basis is thetrust banking activities (ii) the agent of development, namely both the monetary sectorand real sector always interact and affect each other, where the real sector will be unable to perform well if the monetary sector is not working properly. Therefore banking activities in collecting and distributing funds is necessary for smoothreal sector economic activity. and (iii) the agent of services namely, providing the bank also offers other services to the community such as: service delivery, care of valuables, bank guarantees, and settlement of bills. The three functions of banks in these economies, make the bank not only can be interpreted as a financial intermediary (an intermediary financial institution). Banks generally defined by its activities by the Law No. 10 of 1998 as a bank conducting business in a conventional and / or based on Syariah Principle in its activities to provide services in payment traffic. While rural banks (BPR) as a bank conducting business in a conventional and / or based on Syariah principles in their actions do not provide payment services in cross-lau. Sampurno Wibowo,dkk., Management of Bank Loans 43 Most banks and transaction services focused on specific customer types.In general, the type of banks on the basis of the target market can be classified into three, namely : (1) Retail Banks namely, the bank’s focus is the type of services and transactions toretail customers. Understanding the retail here is that individual clients, corporations and other institutions are small scale. (2) Corporate Bank is the bank of this kind of focus and transaction services to clientslarge- scale, usually in the form of corporations. (3) Retail-Corporate Bank is, banks that do not focus on the two options above types ofcustomers. This bank provides pelayananannya not only to retail customers but also to corporate clients. One form of business that can be done by a bank of credit, based on Law No. 10 of 1998, credit is the provision of money or bills can be equated with that, based on the consent or the borrowing and lending between banks and other parties who require the borrower to repay debt after a certain period with interest. Understanding credit has diverse dimensions, starting from the meaning of the word”credit”derives from the Greek word credere, which means “trust” or creditum the Latin meaning “belief in the truth. “ In everyday use this understanding developed into abroader, including : 1) Credit is the ability to execute a purchase or enter into a loan with a promise of deferred payment will be at an agreed time period (Kohler, 1964). 2) Credit is the provision of money or bills can be equated with that, based on the approval or agreement between the borrowing and lending bank with other parties who require the borrower to pay off debts after a certain period with the amount of interest, exchange gains and division results (Chapter 1, Article 1 paragraph 12 of Law No. 7 year 1992 on the banks). In a decision on granting credit to prospective borrowers, financial institutions such as formal banks generally have a particular rating standard.Standards are often used banks 5C principles, namely: 1) Character. 2) Capacity. 3) Capital. 4) Collateral. 5) Condition of Economy. On the basis of the intended use of funds by debtors, loans can be divided into: (1) Kredit Modal Kerja (KMK), namely, credit used to finance working capital needs of our customers. KMK is usually short term and adjusted for working capital turn over period of customer. Judging from the period is WCC consists of 2 (two) types namely, Revolving and KMK Einmaleg. (2) Kredit Investasi (KI) ie, loans used to purchase long-termcapital goods for business customers. KI usually medium or long term, 44 International Journal of Education, Vol. 5, No. 1, November 2010 because its value is relatively large and how to call by the customer through the installment. (3) Kredit Konsumsi (KK) that is, loans that are used in the context of procurement of goods or services forconsumption purposes, and not as capital goods in the customer’s business activities. Micro, Small and Medium Enterprises Article 5 of Law No. 20 year 2008 on Small and Medium Enterprises (MSMEs) AboutObjectives maenyatakan Empowerment, empowerment objectives of Micro Small andMedium Enterprises: (a) Achieve a balanced national economic structure, developing, and justice, (b) Grow and develop the capabilities of Micro, Small and medium enterprises becomestrong and independent business, (c)Enhancing the role of Micro, Small and Medium Enterprises in regional development,job creation, income distribution, economic growth, and poverty of the people frompoverty. Article 5 of Law No. 20 year 2008 on Small and Medium Enterprises (SMEs) on Criteriafor Micro, Small and Medium Enterprises, stated: 1. Micro Criteria are as follows: (a) has a net worth (the reduction in total net worth of business / assets with a value of total liabilities) of at most Rp. 50,000,000.00 not including land and building. (b) Has the annual net sales of Rp. 300,000,000.00. 2. Small Business Criteria are as follows: (a) has a net worth (the reduction in total net worth of business / assets with a value of total liabilities) of more than Rp.50,000,000.00 up to a maximum of Rp. 500,000,000.00 excluding land and building. (b) Has the annual net sales of more than Rp. 300,000,000.00 up to a maximum of Rp,2500000000.00. 3. Medium Business Criteria are as follows: (a) has a net kekayaa (the reduction in total net worth of business / assets with a value of total liabilities) of more than Rp.500,000,000.00 up to a maximum of Rp. 10,000,000,000.00 excluding land and building, or have annual net sales revenue of more than Rp. 2,500,000,000.00 up to a maximum of Rp. 50,000,000,000.00. Paradigm Research This research paradigm is the paradigm of a double with two variables (independentvariables), namely: bank lending, which according to economic sector and by type ofuse with two dependent variables (dependent varible), namely: sales turnover and employment in ICT firms in Bandung and economic development (GDP) and the use oflabor in UMKM in West Java. The scheme of relationship between variables in the model can be described as follows : Sampurno Wibowo,dkk., Management of Bank Loans 45 Figure Research Paradigm Kredit Bank Kredit Perbankan Sektor Industri Kredit Perbankan UMKM Jenis Penggunaan Skala Usaha Sektor ekonomi / lapangan usaha Sektor Industri Nilai Output Tenaga Kerja Kredit Konsumsi Kredit Modal Kerja Kredit Investasi Usaha Menengah Usaha Kecil Usaha Mikro Pertanian Pertambangan Industri Perdagangan Transportasi Konstruksi Jasa Dunia Usaha Jasa Sosial Masyarakat Lainnya Ekonomi Jawa Barat Tenaga Kerja Jawa Barat Sub Sektor Industri Alat Telekomunikasi Tenaga Kerja Nilai Ekspor Nilai Output RESEARCH METHOD The approach used in this research is descritive research and explanatory research The model of analysis used to analyze the influence of free variables (independentvariables) on the dependent variable (dependent variable) is a multiple regression model (multiple regression method) using panel data, the incorporation of datatime series and cross section. To determine the extent of the role of credit extended banking industry for sales and labor turnover ICT industry in Bandung, using multiple linear regression equation model based on the software Eviews version 6.0 with the model are as follows: 46 International Journal of Education, Vol. 5, No. 1, November 2010 titti KMKY 110 titti KMKTK 110 Where is : Yit = Sales turnover of ICT companies in Bandung TKit = M a n p o w e r i n I C T companies in Bandung KMKit = Working capital loans on ICT companies in Bandung β0 = Constant value β1 = Parameter values εlt = Error term t = Year (2002 - 2008) To determine the extent of the role of industrial sector credit by commercial banks andrural banks (state banks, national private banks, private banks and foreign joint venture bank and RB) for the development of value of output and employment industry sector,and its influence on the output value of industry sub-sector exports of telecommunications equipment and telecommunications devices each using multiple linear regression model equation using Eviews software Version 6.0 with the model areas follows: titti KINDY 110 …………… tititti InfKINDY 1210 …………… titti KINDTK 110 …………… tititit InfKINDTK 1210 …………… titti KINDEKSAkom 110 …………… tititti KursKINDEKSAkom 1210 ……… tititti InfKursKINDEKSAkom 13210 … Where is: Y1 = Output value of industry sector in West Java Y2 = O u t p u t v a l u e o f t e l e c o m m u n i c a t i o n s equipment industry sub sector in West Java TK1 = Manpower in the industrial sector in West Java TK2 = Sub-sector workforce in the telecommunications equipment industry in West Java E K S A k o m = E x p o r t Va l u e Te l e c o m m u n i c a t i o n s Equipment Industry in West Java KINDit = Credits are distributed to the industrial sector in West Java Infit = The inflation rate that occurred in West Java Kursit = Currency exchange rate of the dollar against the rupiah in West Java β0 = Constant value β1 = Parameter values εlt = Error term t = Year (2001 – 2007) As for knowing the extent of the role of micro credit, small and medium by commercial banks and rural banks (state banks, national private banks, private banks and foreign joint venture bank and BPR) based on user type (consumer credit, investment andworking capital) and based on the business scale (micro, small and medium enterprises) for economic development and employment in all districts and cities inWest Java Province Sampurno Wibowo,dkk., Management of Bank Loans 47 each using multiple linear regression equation model based on the Fixed Effects Model (FEM) is follows: titititti KMKKIKKPDRB 13210 …… titititti KMKKIKKTK 13210 …… titititti KUMEKUKEKUMITK 13210 Where is : PDRBit = Gross Regional Domestic P r o d u c t ( G D P ) e a c h sector of the economy in West Java Province TKit = M a n p o w e r i n v a r i o u s economic sectors in the Province of West Java KKit = Micro-credit, small and medium-sized commercial banks and rural banks for consumption in West Java KIit = Micro-credit, small and medium-sized commercial banks and rural banks for investmentin West Java KMKit = Micro-credit, small and medium-sized commercial banks and rural banks for working capital in West Java KUMIit = Commercial banks and rural credit for micro-enterprises in West Java KUKEit = Commercial banks and rural credit for small businesses in West Java KUMEit = Credits of commercial banks and rural banks for medium enterprises In West Java β0 = Constant value β1 = Parameter values εlt = Error term t = Year (2002 – 2008) To determine the extent of the role of micro credit, small and medium by Commercial banks and rural banks (state banks, national private banks, private banks and foreign joint venture bank and RB) for the absorption / use of labor in various sectors: agriculture, mining; processing industry, electricity, gas,water, building, trade, hotels and restaurants, transport and communications, finance, banking and businessservices; and services in kabupten and cities in West Java using multiple linear regression model based on fixed effect model (FEM) are as follows: titititittittititititti XXXXXXXXXY i 19876543210 … titititittittititititti XXXXXXXXXTK i 19876543210 … Where is : Y = GRDP City / District in West Java Province TKit = Use of Labor in West Java Province X1 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for the agricultural sector X2 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for the miningand quarrying sector X3 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for industrialsector processing X4 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for the electricity sector, gas and water supply 48 International Journal of Education, Vol. 5, No. 1, November 2010 X5 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for the building sector X6 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for trade, hotels and restaurants X7 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for transportand communications sector X8 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for the financial sector, banking and business services X9 = M i c r o - c r e d i t , s m a l l a n d medium-sized commercial banks and rural banks for services sector β0 = Constant Value β1 = Parameter Value εlt = Error term I = District / City (I = 1 s/d 25) t = Year (2002 – 2008) Operationalization of variables No Variable Concept Indicator Scale 1. ICT company’s sales turnover in Bandung. Value of goods produced by the company in bandung ICT in one period. Value of product sales company in bandung ICT within one year. Million Rupiah 2 ICT manpower in the company in bandung. The number of workers employed by the company in bandung ICT in one period. The number of workers at companies in bandung ICT within one year. People 3 Industrial output and output value of telecommunications equipment communications in the region west Java. Value of output produced by all the telecommunications equipment industry and communications in the region west Java. Value of goods produced by all industries and communications telecommunications equipment company in one year. Million Rupiah 4 Exports of telecommunications equipment communications in the region west Java Value of telecommunications equipment company communications generated in western Java that can be sold abroad. Value of telecommunications equipment west Java communications that are sold abroad in one year. Thousands of U.S. dollars 5. Bruto regional domestic product (PDRB) according to the field of business in various cities in West Java province. Output value (final output) of goods and services produced by residents in a particular region in one period. Output value (final output) of goods and services produced by residents of various districts in the west Java region in one year. Million Rupiah 6. Bruto regional domestic product (PDRB) according to the field of business in various cities in West Java province. Output value (final output) of goods and services produced by residents in a particular region in one period. Output value (final output) of goods and services produced by residents of various kots in west Java region in one year. Million Rupiah 7. Bruto regional domestic product (PDRB) according to the business field in west Java province. Output value (final output) of goods and services produced by residents in a particular region in one period. Output value (final output) of goods and services produced by residents of West Java province within one year. Million Rupiah Sampurno Wibowo,dkk., Management of Bank Loans 49 8 Absorption or the use of field workers by businesses in various cities in West Java province. Total labor force that works according to hours of work or expertise in the various districts in the west Java region in one year. The number of workers who work in various economic sectors in various districts in the west Java region in one year. People 9. Absorption or the use of field workers by businesses in various cities in West Java province. Total labor force that works according to hours of work or expertise in various cities in West Java region in one period. The number of workers who work in various economic sectors in various districts in the west Java region in one year. People 10. Absorption or the use of field workers by businesses in various cities in West Java province. Total labor force that works according to hours of work or skill in West Java province in one period. The number of workers who work in various economic sectors in various districts in the west Java region in one year. People 11. Micro small and medium (MKM) according to the economic sector in various districts in West Java province. Provision of money under c o n t r a c t s b o r r o w i n g a n d lending between banks and m i c r o b u s i n e s s s m a l l a n d medium (MKM) according t o t h e e c o n o m i c s e c t o r i n various districts in West Java province, which memwajibkan the borrower to repay the debt after a certain period of time with interest. The number or amount of loans granted by banks u mum and BPR by economic sector in various districts in West Java province within one year. Million Rupiah 12. Micro small and medium (MKM) according to economic sectors in various towns in west Java province. Provision of money under contracts borrowing and lending between banks and micro business small and medium (MKM) according to the economic sector in many cities in West Java province, which memwajibkan the borrower to repay the debt after a certain period with interest. The number or amount of loans granted by banks u mum and BPR by economic sector in various districts in West Java province within one year. Million Rupiah 13. Micro small and medium (MKM) according to the economic sector in the province of West Java. Provision of money under contracts borrowing and lending between banks and micro business small and medium (MKM) according to the economic sector in West Java province, which memwajibkan the borrower to repay the debt after a certain period with interest. The number or amount of loans granted by banks u mum and BPR by economic sector in various districts in West Java province within one year. Million Rupiah 14. Micro small and medium (MKM) according to type of use in various cities in West Java province.. Provision of money under contracts borrowing and lending between banks and micro business small and medium (MKM) according to the types of uses in various districts of West Java province, which memwajibkan the borrower to repay the debt after a certain period with interest. The number or amount of loans granted by banks u mum and BPR by economic sector in various districts in West Java province within one year. Million Rupiah 50 International Journal of Education, Vol. 5, No. 1, November 2010 15. Micro small and medium (MKM) according to type of use in various cities in West Java province. Provision of money under contracts borrowing and lending between banks and micro business small and medium (MKM) by type of use in various cities in West Java province, which memwajibkan the borrower to repay the debt after a certain period with interest. The number or amount of loans granted by banks u mum and BPR by economic sector in various districts in West Java province within one year. Million Rupiah 16. Micro small and medium (MKM) according to type of use in the provinces of West Java. Provision of money under contracts borrowing and lending between banks and micro business small and medium (MKM) according to type of use in the province of West Java, which memwajibkan the borrower to repay the debt after a certain period with interest. The number or amount of loans granted by banks u mum and BPR by economic sector in various districts in West Java province within one year. Million Rupiah Data and Data Sources Data used in this study are primary and secondary data using time series data (time series) for some district / city in west Java province in the period 2002 to 2008. Research Object Objects in this study based on data from field surveys on ICT companies in Bandung, and derived from secondary data, namely: Bank Indonesia (BI), the central statistical agency (bps), workforce agencies (Manpower), cooperatives and business services small-medium enterprises (SMEs), and regional planning agencies district / city (BAPEDA) in west Java province, while the region is shown in table 3.2 as follows : No. City and district in West Java province 1. Tasikmalaya City. 2. Depok City 3. Cimahi City 4. Bekasi City 5. Banjar City 6. Sukabumi City 7. Cirebon City 8. Bogor City 9. Bandung City 10. Tasikmalaya District 11. Sumedang District 12. Sukabumi District 13. Subang District 14. Purwakarta District Sampurno Wibowo,dkk., Management of Bank Loans 51 15. Majalengka District 16. Kuningan District 17. Kerawang District 18. Indramayu District 19. Garut District 20. Cirebon District 21. Cianjur District 22. Ciamis District 23. Bogor District 24. Bekasi District 25. Bandung District West Java province Model Specification Tests Econometric model using partial regression model using OLS (ordinary least square) is important in the process of analysis, the test will then estimate the model. Coefficient of Determination (R2) Coefficient of determination (r2) indicates how much variation e x p l a n a t o r y v a r i a b l e s a ff e c t t h e dependent variable variation.Coefficient of determination (r2) ranging from0 £ R2 £ 1. r2 greater or close to one means the greater variation dependent variables can be explained by variations in explanatory variables.Otherwise the smaller the value of r2 or close to zero means that the smaller the variation of the dependent variable can be explained by the explanatory variables. Formula used to calculate the value R2 is: R2 = TSS RSS −1 with :TSS= Total Sum Square RSS= Residual Sum Square Hypothesis testing and significance parameter A f t e r t h e e s t i m a t i o n o f regression parameters is done, the next step to test the significance of parameters, which performed to test the hypothesis that has been filed and find significance (significance) effect between the independent variables with dependent variable. As for the research hypotheses, are as follows : H0 : Partially independent variables did not affect the dependent variable Ha : Partially independent variables affect the dependent variable Based on the above research hypotheses, using a significance level 95% or a = 5%, hypothesis testing can be made as follows : 1. Define a null hypothesis and alternative hypothesis: H0 : bi = 0 Ha : bi ¹ 0 Where : i =1, 2, …, n 52 International Journal of Education, Vol. 5, No. 1, November 2010 2. t statistic calculations with formula: i i Sb b t = (3.20.) 3. Testing Criteria: q If –ta £ tstat £ ta (N-k-1), then H0 a c c e p t e d , m e a n s t h a t t h e i n d i v i d u a l i n d e p e n d e n t variables are not significant in influencing the dependent variable q If –ta (N-k-1) ³ tstat or ta (N-k-1) £ tstat, then H0 rejected, means that the independent variables individually significant in influencing the dependent variable. In the Multan Test hypothesis testing in the multan conducted to determine whether or not significant effect given by the Multan independent variable to dependent variable. As for the following research hypotheses : H0 : Independent variables in the Multan does not significantly affect the dependent variable. Ha : Multan is the independent variable significantly affects the dependent variable. Based on the above research hypotheses, testing hypotheses with the F test to determine the effect in the Multan independent variables against dependent variable, using a significance level of 95% or a = 5%. Process aimed at testing the following: 1. Define a null hypothesis and alternative hypothesis: H0 : b1 = b2 = … = bn = 0 Ha : At least there is one bi ¹ 0 , i = 1, 2, …., n 2. F statistical calculations with chart analysis of variance : Sources Of Variation Degrees Of Freedom Sum Of Squares (JK) The Average Sum Of Squares (RJK) Fstat Fa Regresi Residual k – 1 N – k JK Regresi JK Residual RJK Regresi RJK Residual RJK Regresi RJK Residual Tabel Uji F 3. Testing Criteria: q If F stat £ F a (k-1; N-k), then H 0 a c c e p t e d , m e a n s t h a t t h e independent variables jointly insignificant in influencing the dependent variable q If Fstat ³ Fa (k-1; N-k), then H0 rejected, means that the independent variables is jointly significant in influencing the dependent variable. Sampurno Wibowo,dkk., Management of Bank Loans 53 Discussion Influence The Distribution Of Bank Credit In The Industrial Sector For Output, Employment And Exports Of Telecommunications Equipment Communications In Western Java Based on the results of multiple linear regression analysis, can be expressed mathematically: OutputIND = 55.684.433 + 5,416KreditIND (1,49) F = 2,23 R2= 0,3081 ………(4.1) N.S OutputAkom = -67.0885,9 + 0,034KreditIND (0,93) F = 0,88 R2= 0,1501 ...….…(4.2) N.S TKIND= 918.439 + 0,007KreditIND (1,36) F = 1,85 R2= 0,2701 ………(4.3) N.S TKAkom = 816,96 + 2, 38-E5KreditIND (0,35) F = 0,05 R2= 0,0110 …....…(4.4) N.S TKIND = 974.318,10 + 0,009KreditIND - 9.279,021Inflasi (2,01) (-2,16)* F = 3,94 R2= 0,4954 ...(4.5) N.S Sig. TKAkom = -320,99 + 2,47E-06KreditIND + 188,96Inflasi (0,04) (3,55)** F = 6,42 R2= 0,7624 ...(4.6) N.S Sig. EksporAkom = 1.853.636 + 0,034KreditIND (0,93) F = 0,64 R2= 0,096 ………(4.7) N.S Ekspor Akom = 1.309.465 + 0,003KreditIND + 77,551Kurs (0,20) (0,41) F = 0,36 R2= 0,1265....(4.8) N.S N.S Ekspor Akom = 1.925.197 + 0,011KreditIND – 42,276Kurs + 29.352Inflasi (0,58) (1,64) (0,73) N.S N.S N.S F = 0,78 R2= 0,3691 ………(4.9) Ket : (…) = t hitung NS = Non Signifikan Sig = Signifikan (*) Sig pada α = 0,10 (**) Sig Pada α = 0,05 (***) Sig Pada α = 0,05 Hypothesis Testing In The Multan And Partial Calculated by multiple linear regression model is the equation (4.1), (4.2), (4.3), (4.4) and equation (4.7), (4.8) also equation (4.9) obtained Fhitung < Ftabel, then the model is shown to receive H0 (H0 accepted), so that the lending bank for industrial sector (KreditIND) together have no significant influence on the result of telecommunications equipment 54 International Journal of Education, Vol. 5, No. 1, November 2010 exports munkasi either without or by entering the macroeconomic variables. While for the results of equation (4.5) dan (4.6) ) obtained Fhitung > Ftabel, then the model is shown to receive H1 (H1 accepted), so that the lending bank for industrial sector (KreditIND) and the rate of inflation together have a significant effect on employment in western Java. Further changes can be explained as a whole bank lending can not explain (no effect) means the change of value of output and employment in the industry as a whole and the telecommunications equipment industry, exports of communications and telecommunications equipment communications in west Java, so need for performance improvement that can improve production efficiency and breakthroughs in order to develop the production of various types of telecommunications equipment as well as communication which is expected to increase export of various types of telecommunications equipment such communications to foreign countries and assessed whether the large amount of credit given to the industrial sector is adequate. The influence of micro lending, small- medium enterprises (UMKM) by type of use to the economic development of western Java Based on the results of multiple linear regression analysis, can be expressed mathematically as follows: PDRBJB = 8.377.620 + 30,465KIUMKM + 2,589KMKUMKM .….….…..(4.10) (1,99) (0,68) F = 85,09 R2= 0,4974 Sig N.S Ket : NS = Non Signifikan Sig = Signifikan (*) Sig pada α = 0,10 (**) Sig Pada α = 0,05 (***) Sig Pada α = 0,05 Calculated by multiple linear regression model obtained Fhitung = 85,09 > Ftabel = …. , then the model shows no reason to accept H0 (H0 ditolak), so that the investment credit (KINVUMKM) and working capital loans (KMKUMKM) for micro, small and medium enterprises (UMKM) together have a significant impact Produk Domestik Regional Bruto (PDRB) in West Java.Now to find out where the significant variables, it is necessary to test partial (individual) obtained t hitung = 1,990 > ttabel = 1,645 for KINVUMKM, then the model shows no reason to accept H0 (H0 ditolak), so that the investment credit (KINVUMKM) partially have a significant impact on bruto regional domestic product (PDRB) in west Java. While working capital loans (KMKUMKM) had t hitung = 0,681 < ttabel = 1,645, then partially working capital loans (KMKUMKM) had no significant effect on regional domestic product. The need for UMKM to increase productivity to further increase Sampurno Wibowo,dkk., Management of Bank Loans 55 the production (output), so that the presence of bank loans, UMKM can access even more for the capital with cheaper cost compared to looking for sources of funds outside the banking system which has a higher interest rate. The influence of micro-lending, small and medium enterprises (UMKM) according to the business field of economic development west Java Based on the results of multiple linear regression analysis (multiple linear regression analysis). Can be expressed mathematically as follows: PDRB=1.972.968+114,43Tan-27,54Tam+16,47Ind-4,33Dag-76,88Ang+30,65Kon-11.54Jdu+14,27Jsm+6,39Lain (6,27) (-0,61) (3,19) (-1,23) (-2,13) (1,02) (-0,92) (-0,62) (4,90) Sig N.S Sig N.S Sig N.S N.S N.S Sig F = 93,00 R2= 0,8370 Ket : NS = Non Signifikan Sig = Signifikan (*) Sig pada α = 0,10 (**) Sig Pada α = 0,05 (***) Sig Pada α = 0,05 Calculated by multiple linear regression model of UMKM credit obtained for the agricultural sector, mining, industry, trade, hotels and restaurants, transport and communication co, construction, service businesses, community social services, and other sectors together have a significant impact gross regional domestic product (GDP) in west Java. West Java local government, especially through the banking institutions should provide funding policy in order to help UMKM to grow and develop in various economic sectors, through the expansion of funding sources through the provision of various banking-credit schemes for small and medium enterprises. The influence of micro-lending, small and medium enterprises (UMKM) by type of use of manpower west Java. Based on the results of multiple linear regression analysis, can be expressed mathematically as follows : TK = 439.153 - 1,849KINVUMKM + 0,598KMKUMKM …………(4.12) (-3,,99) (5,20) F = 28,05 R2= 0,2460 Sig Sig Ket : Sig = Signifikan (*) Sig pada α = 0,10 (**) Sig Pada α = 0,05 (***) Sig Pada α = 0,05 Investment credit (KINVUMKM) and working capital loans (KMKUMKM) for micro, small and medium enterprises (UMKM) together have a significant effect on employment in western Java. West Java local government, especially through the banking institutions should provide funding policy in order to help UMKM to grow and develop to increase lending to UMKM, particularly for working capital loans as compared to investment credit, because the use of working capital loans to UMKM in western Java partly used for add workers or employees in its production process. 56 International Journal of Education, Vol. 5, No. 1, November 2010 The influence of micro-lending, small and medium enterprises (UMKM) according to the scale of labor in western Java Based on the results of multiple linear regression analysis, can be expressed mathematically as follows : TK = 296.141 + 0,469KUMIUMKM - 0,170KUKEUMKM - 0,134KUMEUMKM ...(4.13) (8,31) (-2,21) (-2,50) Sig Sig Sig F = 41,53 R2= 0,5847 Ket : Sig = Signifikan (*) Sig pada α = 0,10 (**) Sig Pada α = 0,05 (***) Sig Pada α = 0,05 UMKM loans to micro-scale (KUMIUMKM), small-scale enterprises (KUKEUMKM), and medium-scale enterprises (KUMEUMKM) together have a significant effect on employment in western Java. Banking institutions need to provide policies to facilitate and serve the more micro-entrepreneurs and provide capital support for micro-entrepreneurs to improve their business. The influence of micro-lending, small and medium enterprises (UMKM) according to the business field of manpower development in West Java Based on the results of multiple linear regression analysis, are as follows mathematically : TK = 339.993 + 5,69Tan + 3,77Tam + 0,58Ind – 0,29Dag -1,32Ang -1,82Kon + 0,32Jdu + 1,95Jsm + 0,05Lain (7,42) (1,98) (2,67) (-2,01) (-0,87) (-1,44) (0,61) (1,23) (0,90) Sig Sig Sig Sig N.S N.S N.S N.S N.S F = 19,45 R2= 0,5179 Ket : NS = Non Signifikan Sig = Signifikan (*) Sig pada α = 0,10 (**) Sig Pada α = 0,05 (***) Sig Pada α = 0,05 UMKM credit to agriculture sector, mining, manufacturing industries; hotel and restaurant trade, transportation and communication co; construction, service businesses, community social services, and other sectors together have a significant effect on employment in western Java. Banking institutions should give greater credit to sectors of the productive economy, and have a wider effect multipier between sectors, so the increase in credit for UMKM will positively impact employment in west Java.As well as local governments to provide legal certainty for licensing services, transparency, and lower cost, especially for UMKM to various economic sectors in western Java. The discussion results can be seen that there is great potential in the development sector UKM as domestic Sampurno Wibowo,dkk., Management of Bank Loans 57 power.If it is properly managed it will create a formidable medium businesses in countries like china and korea, But on the other hand UKM is facing fundamental problems outline includes the difficulty of market access, lack of business development and the limited access to financing institutions in this regard are banks. Other problems that hinder the development of banking institutions in UKM is treating generally ukm same as medium and large businesses in any financing proposal, which among others include the adequacy of collateral, capital, as well as in terms of business feasibility 5C.Whereas most of the actors can not afford UKM meet these requirements in addition to their needs is still on a small scale. it is seen from the number ukm who enjoy access to capital from the banking institutions amounted to only 22.14 percent. These conditions illustrate that the marketing function of credit in the banking UKM not optimal to run well and are still fettered by the rules in the form of legislation both at local and central inflexible and still wide problems faced by UKM, which was also once a huge potential banks, particularly in lending because it is still a wide open market for micro-credit schemes and small scale. CONCLUSIONS AND SUGGESTIONS Conclusions Discussion of the results of the analysis, it can be deduced as follows: 1. Bank lending in the form of loans for investment and working capital loans to industrial sector did not significantly affect output and employment in total industrial output and communications telecommunications equip ment industry also includes telecom- muni cations equipment industry, exports of communications. 1. Bank lending for investment credit in micro, small and medium enterprises (UMKM) providing positive and significant for economic development in West Java, while working capital loans provide a positive influence but however not significant. 2. Channeling of bank credit to agriculture, industry and other sectors (informal sector), are each providing a significant positive impact for economic development west of Java, this is due to the agricultural sector has a distribution percentage (contribution), the largest in the formation of bruto regional domestic product (PDRB), and industrial sectors have the highest economic growth rate compared to other economic sectors. 3. Lending to UMKM investsi pebankan opposite effect pekembanan employment in west Java, while working capital loans provide a positive and significant effects for employment. 4. Bank lending to UMKM in western Java based business scale, micro- businesses providing a positive influence for the absorption of 58 International Journal of Education, Vol. 5, No. 1, November 2010 labor in western Java. While for the supply of bank credit for small and medium enterprises in the opposite effect on employment in West Java. 5. Bank lending to UMKM for the agricultural sector, mining, and industry, are each providing a significant positive effect for the absorption of labor in western Java, while the trade sector has a negative effect on labor. Suggestions Conclusions based on the suggestions proposed by the authors are as follows : 1. Financial institutions, particularly banks to increase lending to the industrial sector, especially for export-oriented industries, including telecommunications equipment industry, communications, thus not only generate foreign exchange for the country, but also at the same time increasing production capacity and can absorb the use of labor for the community of Java west. 2. Financial institutions (banks) can increase the provision of micro credit for small and medium enterprises (UMKM) based on the type of use for credit- oriented, especially in additional working capital, to the later investment loans, and credit limit consumptive nature, which so far has the biggest portion absorption of banking credit to the UMKM sector in West Java. 3. In an effort to boost the economic growth (GDP) and peyerapan labor for small and medium micro enterprises (UMKM) in west Java, the financial institutions (banks) to increase lending, with puts especially for the field of economic sectors of the productive enterprises, and have a broad impact externalities for other economic sectors, both to increase output and employment. 4. Researchers suggested creating a new alternative funding institutions with the concept of multiplier effects in the hope that this new institution can be split up in the middle of a small community and a source of new hope to be able to build new businesses and improve their quality of life, the concept of a chain effect consists of two basic concepts, namely how to manage and distribute micro-credit and small to be effective and how to find sources of cheap funds that will be used as loan funds for the community, simply the concept of this chain effect can be described by schemes such as the concept of lending, adapted from the concept of Grameen Bank, Grameen is a bank formed the first time in Bangladesh by Mohammed Yunus in 1983.mereka focus on small communities in the hope that their credit channeled to reach and value-added for many individuals is not just a handful of big businessmen. 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