Banjarmasin Expands UMKM Access to Capital Through UMARA
Banjarmasin City Government and Bank Kalsel are widening UMKM access to capital through the UMARA program. The zero-interest loan scheme targets microbusinesses, with an initial ceiling of up to Rp150 million and a staged selection process as applicants keep rising.
BANJARMASIN — UMKM access to capital in Banjarmasin is being widened through the Usaha Mikro Maju Sejahtera program, or UMARA, which offers interest-free business loans for microentrepreneurs. The program was launched by the Banjarmasin City Government with Bank Kalsel and socialized on Wednesday (24/6) at the Banjarmasin Creative Hub Hall.
For small business owners, the impact is immediate. Working capital is often the first wall they hit. The products are there. Buyers are there. What is missing is money to buy raw materials, add stock, or raise output.
UMKM access to capital draws City Hall attention
According to a written statement received in Banjarmasin on Saturday, UMARA comes as an interest-free business loan facility from the Banjarmasin City Government in cooperation with Bank Kalsel to support local UMKM. The city frames the program as one way to help microbusinesses grow stronger, more independent, and more competitive.
Deputy Mayor Ananda said UMKM play a strategic role in supporting the regional economy. That role shows up in job creation, improved household welfare, and a stronger buffer when business conditions turn unstable.
“UMKM contribute greatly to regional economic growth. Yet one of the obstacles still often faced by business actors is limited access to capital. Many businesses have the potential to grow, but they cannot expand optimally because of limited business capital or a lack of information about funding sources,” Ananda said.
That statement points to a simple truth. Capital remains the wall many microbusinesses run into. Not every business fails because the product is weak. Plenty stall because cash flow is thin and financing access stays out of reach.
Zero-interest scheme and the local government's role
Machli Riyadi, head of Banjarmasin's Office of Cooperatives, Micro Enterprises and Labor, said UMARA's main advantage lies in its zero-interest loan structure. The interest burden is covered by the local government, so entrepreneurs can access capital with lighter repayment pressure.
That matters for microbusinesses that usually operate on slim margins. Daily purchases, rent, and production costs can quickly squeeze a small business if financing feels heavy from the start. The government’s interest subsidy gives room to breathe.
Machli said Banjarmasin currently has 59,193 UMKM units that already hold a Business Identification Number, or NIB. The figure shows the city has a large base of microbusinesses, but not all of them can be served at once.
“However, of course not all of them can be facilitated at the same time, so implementation will be carried out in stages,” Machli said.
That staged rollout matters because financing demand usually comes from many directions at once. A home-based food business wants to buy more equipment. A trader wants to widen stock. A craftsman needs raw materials before the next order lands. Their needs differ, but the core issue is the same: access to funds.
Rp150 million ceiling still under review
On loan size, Machli said the maximum ceiling currently prepared is Rp150 million. Even so, the figure will be reviewed again because public interest is high and the number of applicants keeps rising.
At this point, the program is about more than just a number. Clear process matters too. Who qualifies? How will verification work? How fast can the money reach businesses that truly deserve support? UMKM owners often need certainty more than big promises.
That is why socialization matters. The Banjarmasin City Government wants microbusiness owners to understand available financing channels and use the UMARA program effectively to strengthen capital, raise production capacity, and widen market reach.
In practice, knowing the funding source often decides a small business’s fate. Some owners actually meet the criteria but do not know which documents to prepare. Some do not yet have an NIB. Others hesitate to approach formal financing because they are used to self-funding or informal loans. Outreach helps bridge that gap.
UMARA also signals a local policy direction that is putting more weight on productive financing rather than short-term aid. If it runs consistently, a model like this can help microbusinesses scale up without adding heavy upfront costs.
For residents of Banjarmasin, the effect can feel closer than the paperwork suggests. When business owners gain easier access to capital, they can add stock, repair production tools, or even create small job openings in their neighborhoods. From food stalls to home workshops, from small repair shops to local craft businesses, the economic chain moves slowly. But it moves.
What comes next will be watched closely: who gets approved, how much financing is actually disbursed, and whether the zero-interest scheme can truly reach the microbusiness owners who need it most.
