Financial Resources

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Cangkringan is a district in Sleman Regency, Yogyakarta Special Region (DIY), Indonesia. It is located on the slopes of Mount Merapi, an active volcano that often erupts and causes damage to the surrounding areas. Despite the natural disasters, Cangkringan has a potential to boost its local economy by developing various sectors, such as agriculture, tourism, and trade.

The Potential of Cangkringan

Cangkringan has a rich natural and cultural resources that can be utilized for economic development. Some of the potential sectors are:

  • Agriculture: Cangkringan has fertile soil and abundant water that can support various crops, such as rice, vegetables, fruits, and flowers. Cangkringan also has a fish seed center, where farmers can breed various types of fish, such as tilapia, catfish, and gourami. In addition, Cangkringan also produces a special type of freshwater prawn called Udang Galah Sijawa or Udang Galah Produksi Jogja Istimewa. This prawn is native to Indonesia and has a high economic value. It was named by the Governor of DIY and the King of Yogyakarta, Sri Sultan Hamengku Buwono X.
  • Tourism: Cangkringan has many attractions that can attract tourists, such as natural scenery, historical sites, cultural events, and culinary delights. Some of the popular destinations are Kaliurang, a resort area with hot springs, gardens, and museums; Merapi Golf Course, a golf course with a view of Mount Merapi; Ullen Sentalu Museum, a museum that showcases the history and culture of Yogyakarta; and Kaliadem, a village that was buried by volcanic ash and now offers a unique experience of exploring the ruins.
  • Trade: Cangkringan has a traditional market that sells various products, such as agricultural products, handicrafts, souvenirs, and snacks. The market is also a trade center for fishery products in Sleman, especially for the marketing of fish seeds . The market is also a relocation of the previous market that was damaged by the eruption of Mount Merapi in 2010. The market was inaugurated by the Governor of DIY on November 14, 2022.

The development of various sectors in Cangkringan can boost the local economy by creating jobs, income, and welfare for local people. However, to achieve this, there is a need for financial resources that can help local people to improve their businesses. Financial resources can come from various sources, such as banks, cooperatives, microfinance institutions, government programs, or private investors.

Some examples of financial resources that are available are:

  • Bank loans: Local people can apply for bank loans to buy equipment, materials, or inputs for their businesses. Bank loans usually have low interest rates and long repayment periods. However, bank loans also require collateral and good credit history.
  • Cooperatives: Local people can join cooperatives to pool their resources and share their risks. Cooperatives can provide loans, savings, insurance, or marketing services to their members. Cooperatives usually have lower interest rates and more flexible terms than banks. However, cooperatives also require membership fees and regular contributions.
  • Microfinance institutions: Local people can access microfinance institutions that offer small loans, savings, or insurance to low-income people. Microfinance institutions usually have higher interest rates and shorter repayment periods than banks or cooperatives. However, microfinance institutions also have less stringent requirements and more convenient access.
  • Government programs: Local people can benefit from government programs that provide subsidies, grants, or technical assistance to various sectors. Government programs usually have no interest rates or repayment obligations. However, government programs also have limited funds and strict eligibility criteria.
  • Private investors: Local people can partner with private investors who provide capital, technology, or marketing support to their businesses. Private investors usually have high returns and profit-sharing arrangements. However, private investors also have high risks and control over the business.

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