Guarantee Industry Profit Rises by 147.42% in 2011
JAKARTA (IFT) – The guarantee industry recorded a pre-audit net profit of Rp375.7 billion in 2011, marking a 147% increase from Rp151.84 billion in 2010. According to data from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), this significant profit growth was driven by an increase in guarantee service fee revenue, which surged 53.01% to Rp783.28 billion from Rp511.91 billion in 2010.
The industry’s total revenue reached Rp992.73 billion at the end of 2011, reflecting a 54.74% increase from Rp641.53 billion in 2010. Total guarantees booked by the industry amounted to Rp72.97 trillion, a 9.61% rise from Rp66.56 trillion the previous year.
Breakdown of Guarantees
- Non-productive sector guarantees remained the largest contributor but declined by 2.28% to Rp49.56 trillion from Rp50.72 trillion in 2010.
- Productive sector guarantees saw significant growth of 47.72%, reaching Rp23.4 trillion from Rp15.84 trillion in 2010.
KUR Guarantees Experience Rapid Growth
Nahid Hudaya, President Director of Perum Jamkrindo, previously stated that the sharp increase in profit for 2011 was due to the company’s expansion of guarantee activities. Jamkrindo’s total guarantees reached Rp54.33 trillion, reflecting a 60.02% growth from Rp33.95 trillion in 2010.
- Commercial credit guarantees grew 23.96% to Rp34.09 trillion from Rp27.5 trillion in 2010.
- KUR guarantees (People’s Business Credit) saw the highest growth, surging 213.79% to Rp20.24 trillion from Rp6.45 trillion in 2010.
“The KUR guarantee exceeded the government’s target of Rp20 trillion for 2011, mainly because banks became more aggressive in acquiring customers,” said Nahid.
Investment and Capital Boost Support Growth
Ketut Widiana, Director of PT Jamkrida Bali Mandhara, attributed the profit increase in the guarantee industry to a broad market share and strategic investments. The company benefited significantly from reciprocal deposit placements and careful selection of guarantee participants, leading to zero claims in 2011.
Meanwhile, Andra Sapta, Head of Guarantees at Bapepam-LK, stated that investment returns played a crucial role in the profit increase across guarantee companies. He added that Perum Jamkrindo received an additional Rp1.2 trillion in capital from the government, which was invested in various instruments and used as a guarantee for KUR activities.
This capital injection was part of the government’s strategy to enhance credit access for MSMEs and strengthen financial inclusion through guarantee programs.
(Source: Finance Today)