No abstract

This study aims to examine how to reduce MSME Non Performing Loans, especially in developing countries by using the Analytical Hierarchy Process (AHP). The sample of this research is Bank DKI (11 clusters) 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 the Non-Performing Loans (NPL) of MSMEs can best be reduced by restructuring and intensive collection. Restructuring can be done by rescheduling and reconditioning where both can be done separately or simultaneously. Restructuring can be effective if followed by intensive collection by means of periodic billing with a short time frame so that customers know the seriousness of the matter, to convert a problematic loan back to good status.