Jakarta | The Indonesian Credit Guarantee Corporation (Perum Jamkrindo) is ready to guarantee loans distributed by three state-owned banks: BNI, BRI, and Mandiri, which have been appointed by the government to distribute the People’s Business Credit (KUR).
This year, the government plans to accelerate the distribution of three types of KUR, totaling IDR 30 trillion. As the only state-owned credit guarantee company, Perum Jamkrindo targets a guarantee volume of IDR 81.78 trillion this year.
“With this cooperation agreement (PKS), we hope our guarantee target can be achieved,” said Perum Jamkrindo’s President Director, Diding S. Anwar, during the PKS signing event at the Ministry of SOEs, Jakarta, on Thursday (August 13, 2015).
The signing event was attended by Diding, Bank Guarantee Director Bakti Prasetyo, and executives from BNI, BRI, and Mandiri.
Diding, who also serves as Chairman of the Indonesian Credit Guarantee Association (Asippindo), stated that Asippindo, through co-guarantee schemes, would support each other to achieve a total guarantee volume of over IDR 100 trillion.
Deputy Minister of Cooperatives for Business Development and Restructuring, Braman Setyo, appreciated the initiative. He believes that the partnership between the guarantee industry and KUR distributing banks will improve financing access for micro, small, and medium enterprises (MSMEs).
With the president lowering the interest rate for micro-business loans, economic activities are expected to become more dynamic, leading to higher employment absorption.
“In the last limited cabinet meeting, the president announced a significant reduction in the KUR interest rate from 22% to 12% per year, effective from July 2015,” said Braman.
He added that the latest KUR policies include Micro KUR with a maximum limit of IDR 25 million (7% interest subsidy), Retail KUR with limits between IDR 25 million and IDR 500 million (3% interest subsidy), and KUR for Indonesian migrant workers (TKI) with a 12% interest rate (12% interest subsidy), including a 5% collection fee.
“We specifically provide a 3% interest subsidy and guarantee fee compensation for Micro and Retail KUR,” Braman added, who also chairs Perum Jamkrindo’s Supervisory Board.
Credit Guarantee Players
Perum Jamkrindo’s Bank Guarantee Director, Bakti Prasetyo, said that the potential for credit guarantees in Indonesia is enormous. There are 58 million MSME units contributing 97.16% to the national GDP. However, as of June 2015, only 39.18% or 22.15 million MSMEs have accessed bank credit, according to data from the Ministry of Cooperatives and SMEs.
“To address this, the Credit Guarantee Law will help MSMEs access greater financing,” Braman said.
To cover MSMEs that have not accessed bank credit, 19 guarantee companies under Asippindo will be involved. These include Perum Jamkrindo, 15 regional guarantee companies (such as Jamkrida Jatim, Jabar, Riau, Bali Mandara, Sumsel, Sumbar, NTB, NTT, Kalsel, Bangka Belitung, Kaltim, Kalteng, Papua, Banten, and Jateng), and three private companies: PT. PKPI, PT. UAF Jaminan Kredit, and PT. Jamkrindo Syariah.
With Asippindo, especially Perum Jamkrindo, the volume of bank credit is expected to increase, along with the number of micro borrowers. “Ultimately, we hope MSMEs will become more capable of repaying their loans, contributing to overall economic growth and income distribution,” said Bakti Prasetyo.