JAKARTA – Although the number of guarantee companies in Indonesia remains unchanged, their performance throughout 2011 has been quite impressive. The Guarantee and Financing Bureau of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) noted that all financial aspects at these institutions have increased (see table). Generally, this improvement is due to the growing disbursement of credit to micro, small, and medium enterprises (MSMEs).
Bapepam-LK also detailed that most of the guarantees flowed to the non-productive or multi-purpose sector, totaling Rp49 trillion, which is a 3.8% decrease compared to December 2010. In contrast, guarantees for the productive sector, such as MSMEs, reached about Rp22.32 trillion, up 40.89%.
This growth is inseparable from the increased disbursement of MSME credit, particularly through the People’s Business Credit (KUR) program. For each KUR disbursement, the government, through Jamkrindo, must provide a guarantee. The guarantee value is 10% of the credit disbursement.
KUR disbursements throughout 2011 reached Rp27 trillion, a 69% increase compared to 2010, and exceeded the initial target of only Rp16 trillion. “KUR and economic growth are driving the performance of guarantee companies,” explained Nanang Waskito, Director of Guarantee at Perum Jamkrindo, on Monday (2/1).
Bapepam-LK also noted that guarantee institutions in Indonesia invested their funds in deposits by 99.7%, amounting to Rp2.56 trillion. Meanwhile, investments in other portfolios—namely bonds and retail sukuk—accounted for 0.2% or Rp5.2 billion, with other investments at 0.1% or Rp3.14 billion. Unfortunately, Bapepam-LK did not detail the returns on these investments.
However, the overall revenue of the guarantee companies reached Rp904.14 billion, showing a growth of 93.05%. Of that amount, net profit reached Rp712.61 billion, which grew by 102%.
The increased revenue was also driven by improved guarantee quality. It was recorded that the potential non-performing guarantee credit (NPG) as of November 2011 was only 0.05%, a decrease from 0.15% in 2010.
Ketut Indra Satya Dharma Putra, Director of Jamkrida Bali Mandara, stated that the improved performance of guarantee companies was also due to capital injections. For instance, Jamkrida Bali has continued to receive capital injections from the government. “By the end of October 2011, our capital increased by Rp53 billion,” he said. According to regulations, guarantee companies initially have only Rp25 billion in capital.
Nanang added that the guarantee business this year is expected to grow significantly—"at least 15%," he noted—especially since the government continues to push the KUR program in 2012 with a target of Rp30 trillion.
Moreover, several companies are also expanding. For example, Jamkrida Bali will increase its guarantees by partnering with village credit institutions (LPD). Currently, there are four guarantee companies: Jamkrida Jatim, Perum Jamkrindo, Jamkrida Bali Mandara, and PT Penjamin Kredit Pengusaha Indonesia (PKPI).
(Source: kontan.co.id)