ANALYSIS OF PRUDENTIAL PRINCIPLES IN FINANCING FEASIBILITY ASSESSMENT FOR MICRO ENTREPRENEURS

Entrepreneurs at BPRS Taman Indah Darussalam

Abstract

This study examines the implementation of prudential principles in the financing feasibility assessment for MSMEs at BPRS Taman Indah Darussalam. The research is based on the increasing trend of Non Performing Financing (NPF), which rose from 0,06% in 2021 to 1,11% in 2024. Although this figure remains below the threshold set by OJK (5%), it reflects a growing risk that deserves critical attention. This study adopts a normative empirical approach using descriptive qualitative methods, combining primary data from in depth interviews and field observations with secondary data from internal documentation and legal literature. The finding reveal that BPRS Taman Indah Darussalam applies the 5C framework (Character, Capacity, Capital, Collateral, Condition of Economy) as the foundation for assessing financing feasibility. The implementation of prudential principles is supported by a layered organizational structure involving the Risk Management Unit, Financing Committee, and a four eyes principle system. However, field implementation still ecnounters challenges such as the lack of an early warning system, reliance on manual assessment, and difficulties in evaluating MSMEs lacking formal financing records. The study concludes that while the 5C framework serves as a robust structure for risk assessment, its effectiveness needs to be enhanced through the intergration of analytical technology, strengthening of real time monitoring systems, and development of assessment models that are more adaptive to the dynamic nature of the MSMEs segment.