I read on Kompas Newspaper that Indonesian Banks shall make bigger portion of ther credit loan in 2009 to Micro Small and Medium Business (Usaha Mikro Kecil dan Menengah – UMKM). This is already start to be materialized starting on Dec 2008, which the UMKM credit reach 48.5% from total credit loan distribution, compared to 47.6% in Nov 08.

This action is taken since the Banks considered the UMKM is tougher compared to big corporate company with regards to global economy crisis. In the last economic crisis that hit Indonesia in 1998, many big companies has severely hit by the crisis and filled bankruptcy, so it makes the credit for corporate sector went bad.

In the other hand, UMKM is proven to be crisis-proof since they easily adapt to changes on business landscape due to their small size and flexibility. UMKM also do have not much interaction with modern financial system that is found today to be fragile.

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