SMEs, as part of the country’s economic driver, make a significant contribution to increasing the country’s economic growth by absorbing labour and developing development results. However, SMEs experience many obstacles in developing their businesses, and one of the problems is financial limitations. Several efforts have been made to strengthen SMEs’ finances, but financial assistance cannot help SMEs develop their businesses. The cause is weak supervision over the use of funds originating from government assistance or other institutions, so that these funds are not used effectively to develop SME businesses. Thus, the aim of this research is to increase transparency in the monitoring of MSME financial assistance using blockchain technology. The adoption of blockchain technology for MSME financial assistance involves creating a consensus about the source and use of financial assistance stored in smart contracts. All stakeholders must be registered as blocks that will join the blockchain network. The research uses a qualitative approach through a literature review to analyse phenomena and identify problems with financial assistance for MSMEs. The result of this research is a model for adopting blockchain technology to increase transparency in the use of financial assistance for SMEs. The research results also show examples of data simulations using the Hyperledger framework. The research conclusion shows that the application of blockchain in the distribution of funds for SMEs can increase transaction transparency for the government, banks, and SMEs.

Link: Blockchain Technology Adoption Model to Increase Transparency in The Use of SME Funding Assistance