Distribution of Credit Linkage Program to Cooperatives Facing a Competitive ASEAN Economic Community

Abstract

This study examines the implementation of the Linkage Program as access to MSMEs banking credit and to find and formulate arrangements to increase the competitiveness of MSMEs in facing the MEA. Legal entities formed collectively by the community in collaboration with the Regional Government in coaching and funding. It increases competitiveness so that domestic products can compete with foreign products. Cooperatives have a fundamental role in promoting economic independence and have become the mainstay of the lower middle class of society in improving the community's economic welfare. The cooperative is given a loan directly by the bank to finance its members until the joint is large and can provide loans to banks. The method used for writing this journal is normative juridical. The type of normative legal research is research aimed at assessing the quality of the legal norms themselves, so normative legal research is often classified as qualitative research, with the object of research being cooperatives. Cooperatives prefer financing cooperation with SOEs through the Partnership Development scheme. The interest offered is lower than banks, no administrative fees are charged, and administration is more straightforward than banking. In addition, the Government can seek through a Quadro Helix approach involving the Government, Academics, Private Sector, and Community to increase the competitiveness capacity of the Cooperative.