Micro, Small and Medium Enterprises (MSMEs), for the past eight years have become the focus of government attention. The reason is of course very simple, MSMEs are one of the pillars supporting the nation's economy. This can be seen from the existence and strength of MSMEs in other countries, especially in Indonesia which still survives and lives even though the 1998 monetary crisis hit.
Based on this, every country, including Indonesia, continues to pay special attention to MSMEs. The attention given varies, from guaranteeing People's Business Credit (KUR) to intensive and massive assistance throughout the territory of the Republic of Indonesia.
This is done with the hope that MSMEs will not only survive, but can compete in the national, regional, and international arenas. The Indonesian Credit Guarantee Company (Perum Jamkrindo) also synergizes with the government in developing productive businesses to encourage the acceleration of national economic growth.
As a BUMN, Perum Jamkrindo's duties have increased with the issuance of PP Number 1 of 2016, in which Perum Jamkrindo was appointed as the implementing institution for the warehouse receipt system guarantee. Through the warehouse receipt system guarantee, it is hoped that the level of farmer welfare will be increased.
Perum Jamkrindo has been assigned by the government to provide credit guarantees and management consultations to Micro, Small and Medium Enterprises and Cooperatives (UMKMK) in supporting the national economy.
To find out about this credit guarantee issue, Koran Jakarta journalist Frans Ekodhanto interviewed Perum Jamkrindo President Director Diding Sudirdja Anwar in Jakarta recently. Here is the full excerpt.
What are the duties of Perum Jamkrindo? Perum Jamkrindo is a BUMN that has been assigned by the government to provide credit guarantees and management consulting to MSMEs in supporting the national economy.
Thus, Perum Jamkrindo is one of the BUMNs that has an important role in helping MSMEs to access capital from financial institutions, both banks and non-banks, so that MSMEs can maximally utilize the resources and infrastructure provided by the government to improve and develop MSMEs.
What is the background to the birth of Perum Jamkrindo? The presence of Perum Jamkrindo in the country has been since 1970. On July 1, it will be 46 years old. Since its birth, Perum Jamkrindo's task has been to provide credit guarantees for MSMEs. At that time, the cooperative credit guarantee institution (LJKK), now MSMEs more broadly.
From time to time it continues to develop, Jamkrindo's latest assets are already 13 trillion rupiah, its equity is more than nine trillion. In 2016, in the Company's Work Budget Plan (RKAP) we targeted to cover a guarantee volume of 115 trillion rupiah.
We expect for KUR guarantees of at least 65 trillion rupiah non-program. In 2016, Perum Jamkrindo had a special assignment with the issuance of PP No. 1 of 2016 concerning the Warehouse Receipt System Guarantee Institution. This PP mandates the guarantee to Perum Jamkrindo.
As is known, the Law on the Warehouse Receipt System has been around for a long time, thank God, hopefully it can be socialized with the appointment of Perum Jamkrindo.
What is Jamkrindo's vision and mission as a BUMN? The standard vision and mission in general are to become a leading guarantee company and provide the best service to MSMEs so that the national economy can grow. Why MSMEs? Everyone knows, in any country, MSMEs are potential and become pillars because of their visible characteristics, for that there is a guarantee company.
With the presence of a guarantee company, MSMEs can access both banking and non-bank financial institutions, in this case getting credit assistance. These MSMEs have 18 sectors, such as trade, services, fishermen, and other sectors that are not evenly distributed.
We want to go to other sectors that have not been touched too much. For example, maritime, the creative economy industry body that has many sectors such as journalism, fashion, crafts, culinary, and others.
With this creative economy industry body, we are trying to find start-ups, such as young people's start-ups that are usually application-based, for example Go-Jek, Grab, whose domestic ones are like Buka Lapak which are potential.
In addition to the mandate of PP No. 1 of 2016 concerning the Warehouse Receipt System, we also pay attention to MSMEs. In addition to the PP, we also have a legal umbrella, namely Law No. 1 of 2016 concerning Guarantees.
As the President Director of Perum Jamkrindo, what have you done to encourage the acceleration of national economic growth? Based on statistical data from the number of companies, more than 99 percent are MSMEs, while those who can access banking are only under 20 percent, which is around 18 percent.
All guarantee companies must be able to optimize, so that the breakthrough is not only banking but also non-bank financial institutions. For example, we partnered with venture capital for the start-up, meaning the finance is non-bank. From Perum Jamkrindo's side, because the people who must be served are all over the archipelago, we are increasing the number of branch offices (outlets).
Currently, our branch offices are in all provincial capitals, including the newest provincial capitals such as Kaltara. There are also some in several second-level regions, for example in Cirebon and Malang. We have also established potential branches at the district level. The total number is 56.
The goal is to bring services closer to the community so that Jamkrida grows in the regions or BUMD in the regions. Well, in addition to increasing the number of outlets, we are also increasing human resources (HR), both in quantity and quality to be proactive.
So what kind of services does Jamkrindo provide to the public? The service we provide is to motivate all levels and stakeholders in the form of excellent service. So we make efforts to pick up the ball. We think maybe UMKM to come to the bank, the feeling is low so we convince, we strengthen to eliminate that feeling.
The point is that we actively help the UMKM actors. We also prepare mobile service cars for guarantees. In other words, in order to optimize the work of picking up the ball, in addition to having a permanent office, there are also vehicles that are continuously active or traveling around to visit the business community or the UMKM community.
How can people access Jamkrindo or get services from Jamkrindo in the form of capital or any assistance? We encourage socialization, both directly as before and in collaboration with the media. We use two approaches to our services, namely direct and indirect. For KUR, the category is indirect. So we have committed to the distributing bank, so automatically, the MSMEs who come to the distributing bank can get financial assistance.
Automatically, we are the guarantor. So, the existence of branch offices in all provinces and districts as well as mobile vehicles is one of the efforts to pick up the ball, namely providing direct guarantees. MSME actors can come to us or we can come to them. If it is good, then we provide references to the bank to help the MSME actors.
In your opinion, what are the crucial issues facing our MSMEs in this current era? In the era of globalization, especially the ASEAN Economic Community (AEC), it turns out that it is not only collateral or capital that is a problem for MSMEs in Indonesia.
This means that there are other factors, such as financial management, marketing management including how to package goods so that they look decent and good to look at and sell, so that they have value and competitiveness to be able to compete with MSMEs abroad in the MEA era. So I think, Perum Jamkrindo is very crucial to prepare for that. Last year we formed an MSME rating division.
The goal is so that these MSMEs can move up a class, these business actors do not seem to be running in place, but can be motivated and can be even better. In this rating division, the work includes providing assistance or guiding MSMEs so that they can move up a class. We also have a Warehouse Receipt System Division.
Indonesia has long been accustomed to competing with other countries. Why do we seem to be 'afraid' of facing the MEA? From a general guarantee perspective, in any country, these MSMEs need to be supported by a guarantee company. In other places, whether in Italy, Korea, Japan, they have long had a legal umbrella or law. Well, in 2016, we already have a legal umbrella or law.
This means that the government and parliament have sided with the people, namely the MSME actors. In order to face global competition, in my opinion we can be equal. I just have a view, if we go international, it turns out we have to be able to read consumer tastes.
For example, in the Netherlands, what is the market taste? By reading the market taste, we can take advantage of the diaspora, namely the millions of Indonesians who are abroad, whether they live, work or are studying there.
They can be linked or provide input. For example, if in Italy they like this, in the United States they like that, and so on. So it can be said to be our economic intelligence because they are Indonesian people who can make a positive contribution to our nation.
If the packaging is Indonesian style, it can still be accepted or in demand there or not. Yesterday we tried to hold a seminar, both for the warehouse receipt system, and we have also talked with competent diaspora, about how they are included or involved.
What kind of MSMEs does Jamkrindo assist? Talking about MSMEs, of course all sectors, perhaps Indonesia just needs to be inventoried, what are its advantages? Well, in the context of the warehouse receipt system, there are 14 commodities determined by the Ministry of Trade, including rice, grain, rubber, coffee, cocoa, rattan, salt, tin, tea, gambir, copra.
In my opinion, this is our flagship product besides culinary, fashion. If we talk about fashion, our brothers and sisters in Malaysia and Singapore often fly here, to Bandung and Jakarta to buy something, materials or anything in our domestic market, such as Tanah Abang Market.
I heard that Jamkrindo received state capital participation, how much money did they get and what will they use the funds for? Regarding government programs, such as the latest KUR which has been running for eight years, the BUMN guarantor received state capital participation in varying amounts. This year we are assisted by state capital participation, in the APBNP, hopefully it can run smoothly, the plan is 500 billion rupiah.
For guarantee companies, the same as the banking industry or other industries, there is a size and there is a dribble ratio of ten times. This should not be violated. Because we want to expand MSMEs, the capacity needs to be increased. Talking about out standing capacity, calculating asset equity, by calculation we still have a capacity of more than 240 trillion rupiah for the volume of MSME guarantees.
So if the 115 trillion rupiah is achieved this year, but if it turns out to be overflowing, we can still cover it. Plus the state capital participation of 500 billion rupiah, meaning that the state capital participation can be ten times the dribble ratio.
Regarding the state capital participation, what is the plan for the increase? We follow the government policy, which wants to roll out the program. From there we make a business plan, calculate the remaining capacity and calculate the capacity that needs to be added. The mechanism is we make a business plan, submitted to the relevant ministry. We are under BUMN, Ministry of Finance, and DPR. (Source: Koran Jakarta)