Volume 11 - Volume 11
How to Reduce MSME Non – Performing Loans in Emerging Countries? A Study with Analytical Hierarchy Process
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.
Paper Details
PaperID: 2436
Author's Name: Aristo Purboadji, Dedi Budiman Hakin, Hermanto Siregar and Roy Sembel
Volume: Volume 11
Issues: Volume 11
Keywords: Analytical Hierarchy Process, Non – Performing Loans, MSMEs, Regional Development Bank.
Year: 2021
Month: July
Pages: 4120-4129