Implementation of Kredit Sejahtera Program (Prokesra) in Enhancing the Capital Capacity of Micro, Small, and Medium Enterprises (MSMEs)

Abstract

Limited access to capital remains a major challenge for Micro, Small, and Medium Enterprises (MSMEs) in East Java. To address this issue, the East Java Provincial Government introduced the Kredit Sejahtera (Prokesra) Program, which provides low-interest financing through an interest subsidy scheme. However, annual changes in the credit ceiling have affected program realization, including in Sidoarjo Regency, which ranked 14th in Prokesra loan distribution in 2024. This study aims to analyze the implementation of the Prokesra Program in enhancing MSME capital capacity in Sidoarjo Regency. A descriptive qualitative approach was employed using David C. Korten's implementation theory, focusing on the alignment between the program, implementing organizations, and beneficiaries. The findings indicate that Prokesra has generally met the financing needs of MSMEs by providing affordable credit with simplified procedures. The implementing organizations, namely the East Java Cooperative and SME Office and BPR Jatim, demonstrated adequate institutional capacity, clear role distribution, and effective coordination in program implementation. Furthermore, beneficiary selection has been largely consistent with established eligibility criteria, although several applicants remain ineligible due to poor credit records or existing bank loans. Overall, the Prokesra Program has been implemented effectively and has contributed to improving MSMEs' access to capital in Sidoarjo Regency, while broader outreach and more adaptive financing policies are needed to expand program coverage.