SMEs` perception of Crowfunding in Indonesia

Fauji Sanusi1*, Agus David Ramdansyah2, Yeni Januarsi3

1,2 Faculty of Economics and Business, Sultan Ageng Tirtayasa University,

Indonesia

*Corresponding Author: [email protected]

Abstract
This study aims to analyze not only awareness but also perceptions of small and
medium enterprises in Indonesia, especially in Banten on two Fintech models, namely
Peer-to-Peer lending and crowd funding in developing their business. By conducting
survey on 115 SMEs, descriptive analysis was applied through Microsoft Office Excel
data processing. Data analysis uses frequency distribution and central measurement.
This research shows that there is still a lack of knowledge and awareness of Peer-to-Peer
lending and crowd funding model which can be used as alternative financing instruments.
Even so, some of them have a positive perception of development of FinTech. Thus,
steps to increase awareness need to be carried out by related parties such as the
government.

Keywords: Perception, Peer-to-Peer lending, crowd funding, FinTech, SMEs.

INTRODUCTION
Small and Medium Enterprises (SMEs) have played an important role as the main
drivers of economic growth and strength in job creation. However, they have difficulty in
getting adequate funding to prosper. Some strict rules for getting loans make them difficult
to get financing. Palm sugar is an important source of livelihood for farmers and is a core
competency in Lebak district, Banten province. This district is known as one of the biggest
palm sugar producing regions in Indonesia. The palm sugar industry in this district
absorbs 5,406 workers through 2,982 Micro and Small Business units, not including labor
in its distribution channel. Annual production capacity reaches 2,249.4 tons spread across

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44 production centers so that palm sugar is declared as one of the strategic commodities
of Banten province (Department of Cooperatives and SMEs of Lebak Regency, 2017).
However, the palm sugar SME industry faces obstacles in terms of safe financing.
The reasons for this problem vary among them is that although small, the SME's finances
carry a high enough risk, small credit loans are often too expensive and provide little
payback. In addition, some banks apply terms and regulations that cannot be reached by
some SME actors such as collateral conditions so that these SMEs are declared as
"unbankable". Furthermore, some SMEs often lack the knowledge, skills, abilities, and
resources to manage finances in a sophisticated way and to carry out systematic
fundraising. The Financial Services Authority (OJK) is currently striving to encourage the
growth of the peer to peer lending or fintech lending industry to increase financial inclusion
especially expanding access to MSME capital.
Although Indonesia can be said to be late compared to other countries, in this
digital age has created the use of Financial Technology (FinTech), technology and
innovative business models in the field of technology-based financial services. Some
financial institutions among them emerged in a creative way. They offer and provide
funding or financing alternatives for SMEs for business development. Based on data from
the Financial Services Authority (FSA), as of May 31, 2019, the total number of registered
and licensed FinTech operators was 113 companies as presented in table 1 below:

Table 1. List of Fintech in OJK

No Platform name Website Company
. 1 Investree https://p2p.danamas.co.id PT Pasar Dana Pinjaman
2 Danamas https://www.investree.id PT Investree Radhika
3 Amartha https://amartha.com Jaya PT Amartha Mikro Fintek
4 Dompet Kilat https://www.dompetkilat.co.id PT Indo Fin Tek
5 KIMO http://kimo.co.id PT Creative Mobile
6 Tokomodal https://www.tokomodal.co.id AdventurePT Toko Modal Mitra
7 UangTeman https://uangteman.com Usaha PT Digital Alpha
8 Koinworks https://koinworks.com IndonesiaPT Lunaria Annua
9 Modalku https://modalku.co.id TeknologiPT Mitrausaha Indonesia
10 KTA Kilat http://www.pendanaan.com Grup PT Pendanaan Teknologi
11 AwanTunai https://www.awantunai.com Nusa PT Simplefi Teknologi
12 KlikACC https://klikacc.com IndonesiaPT Aman Cermat Cepat
13 CROWDO https://crowdo.co.id PT Mediator Komunitas
14 Akseleran https://www.akseleran.com IndonesiaPT Akseleran Keuangan
15 Taralite https://www.taralite.com Inklusif PT Indonusa Bara
Indonesia
16 FINTAG http://fintag.id SejahteraPT Fintegra Homido
17 Invoila http://invoila.co.id IndonesiaPT Sol Mitra Fintec
18 TunaiKita https://www.tunaikita.com PT Digital Tunai Kita
19 Igrow https://igrow.asia PT iGrow Resources
Indonesia
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 20 Cicil https://www.cicil.co.id PT Cicil Solusi Mitra
21 Dana Merdeka http://danamerdeka.co.id TeknologiPT Intekno Raya
22 Cash Wagon https://cashwagon.id PT Kas Wagon Indonesia
23 Esta Kapital https://www.estakapital.co.id PT Esta Kapital Fintek
24 Ammana https://ammana.id PT Ammana Fintek
25 Gradana https://gradana.co.id SyariahPT Gradana Teknoruci
26 Dana Mapan http://www.danamapan.id IndonesiaPT Mapan Global Reksa
27 Aktivaku http://www.aktivaku.id PT Aktivaku Investama
28 Danakini https://danakini.com TeknologiPT Dana Kini Indonesia
29 Finmas https://www.finmas.co.id
https://danakini.co.id PT Oriente Mas
30 Indodana http://indodana.id SejahteraPT Artha Dana Teknologi
31 Kredivo https://www.kredivo.id PT FinAccel Digital
32 Mekar.id https://mekar.id IndonesiaPT Mekar Investama
33 PinjamanGo https://www.pinjamango.co.id SampoernaPT Dana Pinjaman
34 iternak.id https://iternak.id/ Inklusif PT Perlu Fintech
35 Kredit Pintar http://kreditpintar.co.id IndonesiaPT Kredit Pintar
36 Kredito https://kredito.id IndonesiaPT Fintek Digital
37 Crowde https://crowde.co.id IndonesiaPT Crowde Membangun
38 PinjamGampan http://www.kreditplusteknologi.id BangsaPT Kredit Plus Teknologi
39 g TaniFund https://tanifund.id PT Tanifund Madani
40 Danain https://www.danain.co.id IndonesiaPT Mulia Inovasi Digital
41 Indofund.id https://indofund.id PT Bursa Akselerasi
42 SGPIndonesia https://www.sgpindonesia.co.id IndonesiaPT Semesta Gerakan
43 KreditPro http://kreditpro.id Persada PT Tri Digi Fin
44 Avantee http://www.avantee.co.id PT Grha Dana Bersama
45 Do-It http://www.do-it.id PT Glotech Prima Vista
46 RupiahCepat http://rupiahcepat.co.id PT Kredit Utama Fintech
47 Danarupiah http://www.danarupiah.id IndonesiaPT Layanan Keuangan
48 Danabijak http://danabijak.co.id BerbagiPT Digital Micro
49 Cashcepat http://cashcepat.id IndonesiaPT Artha Permata
50 Danalaut http://danalaut.id MakmurPT Seva Kreasi Digital
51 Danasyariah http://danasyariah.id PT Dana Syariah
52 Telefin http://telefin.co.id IndonesiaPT Solusi Finansial
53 Modalrakyat http://modalrakyat.id Inklusif PT Modal Rakyat
54 Kawancicil http://kawancicil.co.id IndonesiaPT Kawan Cicil Teknologi
55 Sanders One http://sanders.co.id Utama PT Satustop Finansial
56 Kreditcepat
Stop Solution http://kreditcepat.id Solusi PT Alfa Finance
57 Uangme http://uangme.id IndonesiaPT Uangme Fintek
58 Pinjam Duit http://pinjamduit.co.id IndonesiaPT Stanford Teknologi
59 Pinjam Yuk http://pinjamyuk.co.id IndonesiaPT Kuai Kuai Tech
60 Pinjam Modal http://pinjammodal.id IndonesiaPT Finansial Integrasi
61 Julo http://julo.co.id TeknologiPT Julo Teknologi
62 Easy Cash http://indo.geteasycash.asia IndonesiaPT Indonesia Fintopia
63 Maucash http://maucash.id PT Astra Welab Digital
Technology
64 RupiahOne http://rupiahone.co.id Artha PT Finlink Technology
65 Pohon Dana http://pohondana.id IndonesiaPT Pohon Dana
66 Dana Cita http://danacita.co.id IndonesiaPT Inclusive Finance
67 DANAdidik http://danadidik.id Group PT Pasar Dana
68 TrustIQ http://trustiq.id TeknologiPT Trust Teknologi
69 Danai http://danai.id FinansialPT Adiwisista Finansial
70 Pintek http://pinduit.id TeknologiPT Pinduit Teknologi
Indonesia
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 71 Pinjam http://smartcapital.id PT Pinjam Meminjam
72 Danamart http://danamart.id Global PT Dana Aguna
73 SAMAKITA http://samakita.co.id PT Sejahtera Sama Kita
Nusantara
74 Saya Modalin http://sayamodalin.co.id PT Minitech Finance
75 PLAZA http://plazapinjaman.id PT Nusantara Digital
Indonesia
76 Vestia P2P
PINJAMAN http://web.vestia.co.id TechnoPT Tujuh Mandiri
77 LendingSinga
Platform http://singa.id PT Abadi Sejahtera
Sejahtera
78 AdaKami http://adakami.id PT Pembiayaan Digital
Investindo
79 ModalUsaha http://modalusaha.id PT Indo Fintek Digital
Indonesia
80 Asetku http://asetku.co.id PT Pintar Inovasi Digital
81 Danafix http://danafix.id PT Danafix Online
82 Lumbung Dana http://lumbungdana.co.id PT Lumbung Dana
Indonesia
83 lahansikam http//lahansikam.co.id PT Lampung Berkah
Indonesia
84 Modal Nasional www.modalnasional.co.id PTTeknologi
Finansial Solusi Teknologi
85 Dana Bagus www.danabagus.id PT Dana Bagus
Finansial
86 ShopeePayLat www.lenteradana.co.id PT Lentera Dana
Indonesia
87 er ikredo online www.ikredo.id PT Investdana Fintek
Nusantara
88 AdaKita www.adakita.co.id PT Unikas Indonesia
Nusantara
89 UKU www.ukuindo.com Pasifik PT Teknologi Merlin
90 Pinjamwinwin www.pinjamwinwin.com PT Progo Puncak Group
Sejahtera
91 Pasarpinjam www.pasarpinjam.co.id PT Digital Bertahan
92 Kredinesia www.kredinesia.id PT Kreditku Teknologi
Indonesia
93 BKDana www.bkdana.id PT Berkah Kelola Dana
Indonesia
94 Gandeng www.gandengtangan.co.id PT Kreasi Anak
95 Tangan.org
Modalantara www.modalantara.id PT Anantara Digital
Indonesia
Indonesia
96 Komunal www.komunal.co.id PT Komunal Finansial
97 ProsperiTree www.prosperitree.co.id PT Newline Fintech
Indonesia
98 Danakoo www.danakoo.id PT Danakoo Mitra Artha
Indonesia
99 Cairin www.cairin.id PT Idana Solusi
10 Batumbu www.batumbu.id PT Berdayakan Usaha
Sejahtera
0 10 empatkali www.empatkali.co.id PT Empat Kali Indonesia
Indonesia
1 10 jembatanemas www.jembatanemas.id PT Akur Dana Abadi
2 10 klikUMKM www.klikUMKM.co.id PT Pinjaman
3 10 Kredible www.kredible.co.id PT Sinergi
Kemakmuran Mitra finansial
Rakyat
4 10 klikkami www.klikkami.co.id PT Harapan Fintech
5 10 Kaching www.kaching.id PT Arthatech
Indonesia
6 10 FinPlus www.finplus.co.id PT Rezeki
Internasional Bersama
Manajemen
7 10 alamisharia www.p2p.alamisharia.co.id PT Alami Fintek Sharia
Teknologi
8 10 syarfi www.syarfi.id PT Syarfi Teknologi
9 11 Digilend www.digilend.id PT Digilend Mobile
Finansial
0 11 asakita www.asakita.id PT Digitron Solusi
Nusantara
1 11 Duha Syariah www.duhasyariah.com PT Duha Madani Syariah
Indonesia
2 11 Bocil bocil.id PT Bole Cicil Indonesia
3 Source: OJK 2019

From the various types of FinTech instruments, the two most common alternative
financing channels are peer-to-peer (P2P) loans and crowdfunding. P2P loans or social
loans are the practice of matching borrowers and lenders through an online platform.
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Borrowers can generally obtain funds quickly and usually at the same or lower interest
rates than traditional financial institutions and try to use the information that is spread.
According to Einav, et al (2016), a key component of many peer-to-peer markets is the
use of reputation or feedback mechanisms.
Meanwhile, the crowdfunding model is the practice of collecting a sum of money
for a project from a large group of people, or "crowds." Kuppuswamy and Bayus (2015)
state that crowdfunding is a relatively new form of informal venture financing that enables
entrepreneurs to directly request financial assistance from the general public in getting
their innovative ideas. Geographically, this practice can be achieved by using the internet
as an online platform. Crowdfunding comes in various forms based on the benefits
provided to funders. According to Colombo, et al (2014), Crowdfunding not only acts as
an ordinary intermediary institution, but also acts as a loci or a center of memory for social
relations. Bradford (2012) divides crowdfunding into five parts, namely: (1) the donation
model, (2) the reward model, (3) the pre-purchase model, (4) the loan model and (5) the
equity model. From these five parts, crowdfunding can apply one or more models.
In our society at large, Crowdfunding is often used when there is a need to raise
money to help people in need, where funders do not receive explicit compensation for
their financial support. The Crowdfunding Equity Model is easier and similar to the
traditional investment model. Funders who provide financial support gain favorable
interest in the form of ownership of shares or equity in the company, in return for their
investment. Alternative financial channels such as P2P and Crowdfunding have the
potential to generate undeniable financial support and growth opportunities for SMEs.
However, they also face challenges on the demand and supply side because of their
limited awareness of their existence and FinTech's regulatory framework which is
uncertain in some respects.
Agrawal et al, (2011) states that crowdfunding not only contains external social
capital but also internal social capital which both play an important role in the success of
funding collection, where according to (2014) external social capital is reflected in family,
close friends, personal acquaintances and also contacts on social media, while Internal
social capital is a network formed by fellow members of the crowdfunding community.
Furthermore Colombo, et al (2015) stated that, Internal social capital is positively related
in attracting contributions at the beginning of the campaign period of a project on a
crowdfunding platform. Two years earlier, Berglin and Stranberg (2013) showed the
results of their research that, the motive why someone wants to fund projects in
crowdfunding is the motive of "wanting to be part of the community" and also "wanting to
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establish relationships with others. That is what forms the existence of internal social
capital in crowdfunding. Thus, crowdfunding can potentially form social capital, which can
affect the level of success in raising funds. The amount of funds collected is related to the
strong social capital owned by the party who submitted the financing.
Some domestic research results reinforce the above research results, such as
research conducted by Aziz, et al (2019) which shows that the variables of religiosity,
campaign effectiveness and platform innovation have a positive effect on people's
decisions to channel donations through online-based crowdfunding systems. While social
mental variables have a negative influence and overall the variables studied have
significant value. In addition, Rahayu (2013) in her case study of a FinTech organizer
showed that, patungan.net has indirectly supported the development of social welfare.
Barriers to crowdfunding model fundraising based on this research are that project
initiators usually campaign for their projects without activating their community networks.
Meanwhile, Nurdana (2018) in her research showed that there were significant
differences between the numbers of workers, business turnover, product sales, profits
and business costs between before being given a loan and after being given a P2P
lending loan.
This study aims to analyze the awareness and perceptions of Small and Medium
Enterprises (SMEs) Palm Sugar Lebak, Banten related to the existence of alternative
financing channels such as Peer-to-Peer loans and crowdfunding as part of Fintech in
supporting the growth and expansion of their business in the future.

RESEARCH METHODOLOGY
Survey Construction and AIDA Models
The researcher designed as many as 17 questions to conduct a survey related to
the research variable. The questions are divided into 3 sections. Part I general questions
about the Respondent's profile, part II questions refer to awareness and part III questions
based on perception. Respondents in this survey are palm sugar SMEs in Lebak regency,
Banten province who have implemented e-commerce in running their businesses. The
survey took place during March 2019. The questions in the survey are presented in table
3. The purpose of the question that refers to awareness is to find out whether the
development of FinTech has attracted the attention of palm sugar SMEs in the Lebak
district, Banten. While the design of questions based on perception aims to find out their
interests and desires in the use of FinTech. The questions are designed based on the

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AIDA Model Framework (Attention, Interest, Desire and Action), as shown in table 2
below:

Table 2. AIDA Models and E-Business strategies

ATTITUDE MODEL AIDA PROCESS E-BUSINESS COMMUNICATION STRATGY
Use offline media to attrack the audience`s attention
COGNITION
ATTENTION to the website. Use search engines. Use other website
(Thinking)
as media for advertising a website
Use customization and personalization technique to
meet the individual`s needs. Use targeted e-mail and
AFFECT (Feeling) INTEREST
permission marketing. Use push (push delivery of
content to web users) to send info to the audience
Develop content and design that appeal to the target
CONATION DESIRE audience include relationship development
(Behavior) component that will keep the audience at the site
ACTION Use promotion to entice actions
Source: Arora (2019)

Table 3. List of the questionnaire (Questions number 14 through 17 use a 5

point Likert scale).
Part I Responden Profile
1 Sex
2 Age
3 Education
4 Business age
5 Business place
6 Revenue
7 Started using e-commerce in your business
8 What percentage (%) Increases business revenue after using e-commerce

Part II Questions about awareness

9 Have you ever used Fintech services in your business?
10 Do you know of any type of Fintech service:
a) Savings or investments such as Crowdfunding
b) Lending such as Peer to Peer
c) Insurance
d) Transfer or payment
12 a) Have you ever used a P2P lending?
b) Have you considered using a P2P lending?

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 13 a) Have you ever used Crowdfunding?
b) Have you considered using Crowdfunding in the future?

Part III Questions about Perception

14 What do you think of the current bank service? Options are given to
respondents.
15 Do you think that Fintech (e.g. P2P, Crowdfunding, etc.) is the best alternative
way to get funds for your business?
16 What aspects will you consider when you plan to borrow money from Fintech-
related services?
a) Security protection
b) Competitive interest rates
c) Quality of service
d) Timely and efficient
e) Transparency
f) Comfort
17 What innovation do you expect from the development of fintech in
Indonesia?
a) Become an alternative source of financing for SMEs in various sectors
b) Offering a better interest rate compared to existing financing
c) Offering financing options in accordance with Islam
d) Offering an easy application process
e) Provides safe protection for borrowers
f) Stimulate the growth of business activities in Indonesia

This research was carried out using a set of closed questionnaires distributed to
sugar palm SME actors in the Lebak district of Banten Province to get feedback on their
understanding of Fintech.

RESULTS AND DISCUSSION

Part I: General description of the respondent
The number of respondents in the study was 115 people. They are the palm sugar
SMEs who already use the internet in running their business which is spread in 44
production centers in Lebak regency, Banten province. Descriptive statistical analysis
was performed using a Microsoft Office Excel data processing application. Frequency
distributions and measures of central tendencies with mean and size variation by sample
are used for data analysis.

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 Table 4. Overview of Respondents
Category Description Total (%)
Sex Male 78 67.83
Female 37 32.17
17-20 5 4.35
21-30 32 27.82
Age 31-40 33 28.70
31-50 30 26.09
51-60 12 10.43
> 61 3 2.61
Elementary 10 8.70
Junior High School 32 27.82
Education Senior High School 65 56.52
Diploma 3 2.61
Bachelor 5 4.35
< 1 year 24 20.87
Business age 1-3 year 35 30.43
> 3 year 56 48.70
Business place Home 108 93.91
Other 7 6.09
< 10. 000.000 74 64.35
Revenue (Rp) 10. 000.000 - 50.000.000 38 33.04
> 50.000.000 3 2.61
Started using e-commerce < 1 year 67 58.26
1-3 years 46 40.00
in your business
> 3 years 2 1.74
< 30% 32 27.83
Increases business revenue 30% - 50% 38 33.04
50% - 70% 23 20.00
after using e-commerce
70% - 100% 17 14.78
> 100% 5 4.35
Source: Primary data processed

Part B: Awareness-Based Questions

The experience of SMEs in using FinTech can be seen from the answer to question
Number 9 from the second part of the questionnaire as shown in Figure 1 below.
Respondents were asked about experience in using technological innovations at FinTech.
The results show that the majority of respondents do not have experience in using
Fintech.

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 Have you ever used Fintech services in your business?

11,3%

88,7%

Yes No

Figure. 1. Awareness-based questions

Knowledge of the types of Fintech services

From question number 10, we find that some of them are aware of the latest
technological developments in the digital financial system, such as the type of online
money transfer or payment service, where as many as 75 people or about 60% of 115
respondents already know. The rest of their knowledge of other types of services shows
a very small percentage, savings or online banking such as Crowfunding (6, 1%), loans
such as Peer-to-Peer (9.6%) and insurance as much as 3.5%. This answer shows that
the majority of respondents have limited knowledge and awareness about FinTech
services provided by non-bank financial institutions.

Are you aware of the following types of Fintech services:

d) Transfer or Payment 65,2% 34,8%

c) Insurance 3,5% 96,5%

b) Peer to Peer Lending 9,6% 90,4%

a) Crowdfunding 6,1% 93,9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No

Fig.2. Respondents' answers regarding knowledge of Fintech service types

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Experience and Considerations about FinTech in the Future
The final question in the second part of the questionnaire, respondents explicitly
asked their experience in using P2P loans and crowdfunding and whether they would
consider using this new instrument in the future. Measurement of answers using the
Guttman scale "yes" and "no". This scale is used to avoid doubts in the answers of
respondents.
Figure 3 shows that only 7% have ever used P2P and 5.2% have ever used
Crowfunding. This proves that the majority of respondents have no experience on these
two types of FinTech instruments. However, for questions of consideration regarding
future use of P2P and crowdfunding loans, the results show that more than 50% consider
the use of P2P lending (53.9%) and Crowdfunding (55.7%) in the future.

b) Have you considered to use Crowfunding? 55,7% 44,3%

a) Have you ever used Crowdfunding? 5,2% 94,8%

b) Have you considered to use P2P Lending? 53,9% 46,1%

a) Have you ever used P2P Lending P2P? 7,0% 93,0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No

Figure.3. Respondents' answers on Experience and Considerations for using FinTech

in the Future

Perceptions about the current Financing Services provided by the Bank

In the third part of the questionnaire, respondents were asked their opinions and
perceptions about the current services provided by conventional financing, especially
bank loans. The problems listed in Figure 4 were identified from various sources such as
articles, newspapers and journals relating to the problem of loan services provided by
banks to SMEs. The analysis shows that, interest rates or prices are too high, too many
conditions that must be met by collateral that are inadequate when borrowing are the
three top problems identified. Respondents' general perception of FinTech (P2P loans,
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Crowdfunding, and other instruments) as the best alternative way to get funds for
business development was ranked on a scale from 1, "Strongly Disagree" to 5, "Strongly
Agree." As shown in Figure 5. An average answer of 3.7 shows that most people agree
that FinTech is the best alternative way to get funding for their business.

Current Bank Lending Perceptions

g. Reducing control 2,1

f. No suitable type of bank lending 2,4

No need Bank Financing 2,2

d. Bank rejected 2,6

c. Insufficient guarantees 3,8

b. Too many requirements 4,3

a. Interest rates are too high 4,8

1 2 3 4 5

Mean Scale

Fig.4. Respondents' perceptions about the current Financing Services provided by

the Bank

FinTech as the best alternative way to get funding for business development

3,7

1 2 3 4 5

Mean Skala

Fig.5. Respondents' perceptions about FinTech as an alternative to business

development

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Perception of SMEs at Fintech as Alternative Financing
As shown in Figure 6, respondents were asked what elements they would consider
when choosing a P2P or Crowdfunding loan as their source of financing. In this question,
seven elements are prepared based on the current quality of financial services and are
ranked from a scale of 1, "Very Not Considering" to 5, "Very Will Consider." The results
show that the element "Government Licensing" is the most considered element with an
average of 4.2, followed by Security Protection (average 3.7), Competitive interest rates
(average 3.4), service quality , timely and efficient and comfort (average 3.2), and
transparency (average 3.80).
In addition to asking for consideration when choosing FinTech as an alternative
financing, respondents were also asked for their expectations from developing FinTech.
The list of expectations was collected from the preliminary study and ranked from a scale
of 1, "Strongly Disagree" to 5, "Strongly Agree." Most respondents with an average of
4.17 agreed that the development of FinTech would further stimulate business activities.

What aspects will you consider when you plan to borrow money from Fintech-related
services?

g) Licensing from the government 4,2

f) Convenience 3,2

e) Transparency 2,9

d) Timely and efficient 3,2

c) Quality of service 3,2

b) Competitive interest rates 3,4

a) Security protection 3,7

1 2 3 4 5

Mean Scale

Figure.6. Respondents' perceptions about aspects considered in relation to

Fintech
CONCLUSION
After the Financial Services Authority (OJK) through its press release in May 2019
then campaigned to continue to encourage and expand access and increase fintech
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lending inclusion for SME capital, awareness and understanding of palm sugar SMEs in
the Lebak district of Banten province regarding the existence of FinTech (P2P loans and
Crowfunding loans) ) needs to be measured. And these measurements can be concluded
through this study, as follows:

Awareness
In short, based on answers to questions number 9 and 10 and from Figures 1 and
2, it shows that the level of awareness of most respondents is still very limited, especially
on P2P loans, Crowdfunding and other FinTech services provided by non-bank financial
institutions.

Perception
However, based on the results of perception, from Figures 3 and 5, the majority of
respondents have positive responses and perceptions of the development of FinTech.
These results reflect a good sign of accepting new financing options for palm sugar SMEs
in the Lebak district of Banten province. In addition, the findings in Figure 6 show that
new alternative financing channels with licensing from the Government and with
appropriate regulations can accelerate the acceptance of alternative financing
instruments. Figures 5 and 6 show that the majority of respondents hope that FinTech will
be the best alternative financing option apart from conventional financing channels, and
the development of FinTech will further stimulate and foster the activities of palm sugar
SMEs in the Lebak district of the province in Banten.

Recommendations
This finding shows that the Government and relevant authorities need to make
more efforts not only to increase awareness and knowledge of SMEs but also to ascertain
how these alternatives can benefit them. One effort that can be done is to further increase
financial literacy among SMEs and start immediately because this financial knowledge
will have an impact on increasing the total source of business financing and their
competitiveness.
Educational institutions and other institutions that pay attention to SMEs should
more often organize competitions on the latest technology-based business models. This
needs to be done to increase the awareness and interest of young people in FinTech and
entrepreneurship. Initiatives to increase the application of technology in running
businesses among SMEs to a higher level are urged to be done so that they can
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immediately change various aspects of their business practices and encourage them to
move into digital space so that their competitiveness increases.
However, it should be underlined that the level of trust provided by most SMEs in
financial services provided by non-banks is still very low. Therefore, better promotion and
guidance through mass and social media must often be carried out by the authorities to
promote potential alternative financial options in helping and supporting SMEs. On the
government side, more precise and coherent policies or regulations on alternative
financial markets must be put in place. To ensure that this market provides appropriate
financial services to the public, strict enforcement of regulations must also be
implemented. In this case, good collaboration between organizations, government,
educational institutions and the private sector is needed in a sustainable and effective
manner. And ensure that all efforts are successfully implemented and reach the target.

Limitations
The results of this study do not represent all awareness and perceptions of all
SMEs in Banten because the size of the respondents in this survey is quite small
compared to the actual number. Therefore, this study can be continued with a more
significant scale of respondents. In addition, further research is important to be carried
out by related institutions such as the authorized government to obtain more data that is
consistent and accurate so that it will be more relevant to the programs designed.

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