JAKARTA: Perum Jaminan Kredit Indonesia (Jamkrindo) finally received a government capital injection of Rp900 billion at the end of December 2010 to strengthen the company's capital for business expansion this year.
The capital injection followed the DPR's approval for an additional state capital participation of Rp1.8 trillion, which was also provided to another state-owned insurance company, PT Asuransi Kredit Indonesia (Askrindo).
This addition will enhance the guarantee capacity of both Askrindo and Jamkrindo to support the government's target for disbursing People’s Business Credit (KUR).
Jamkrindo President Director Nahid Hudaya stated that they have received the government capital injection and that these funds will be used for business expansion this year.
"Last year, the PMN funds were disbursed at the end of December—Rp900 billion for Jamkrindo, with the remainder for Askrindo. This money is for business expansion," he said in Jakarta today.
Nahid previously mentioned that both state-owned companies, Jamkrindo and Askrindo, require a government capital injection of Rp10 trillion by 2014 to boost the disbursement of People’s Business Credit (KUR), which the government has targeted to reach Rp100 trillion over the next five years.
He explained that this need is long-term in order to support the disbursement of KUR to micro, small, and medium enterprises (MSMEs) as planned by the government.
According to Bisnis, the total credit guaranteed by Jamkrindo over the past three years has continuously increased, especially for existing credit guarantees. In 2007, the total credit guaranteed was Rp17.02 trillion, which rose to Rp23.7 trillion in 2008 and reached Rp25.4 trillion last year.
It is well known that the government has set an annual target of Rp20 trillion in KUR disbursements from 2010 to 2014, totaling Rp100 trillion over five years.
In mid-2009, both institutions also requested a capital injection because the gearing ratio—or the ratio of accumulated guarantees to capital—had exceeded 10 times.
In the first quarter of 2010, Jamkrindo’s productive credit gearing ratio was 6.93 times, with outstanding credit of Rp10.24 trillion and its own capital at Rp1.47 trillion. Last year, the gearing ratio was lower, at 5.04 times, compared to 8.69 times in 2008.
Nahid explained that with a lower gearing ratio, the company still has room to increase guarantees, although caution must still be maintained. The gearing ratio is the ratio between credit disbursement and the company's capital.
(source: http://www.mediaindonesia.com/read/2010/12/22/189898/20/2/427.782-Debitur-KUR-BRI-Pindah-ke-Kredit-Komersil)