Jakarta | As is known, Micro, Small, and Medium Enterprises and Cooperatives (MSMEs) dominate in Indonesia. As many as 99% of the 57.54 million business actors in Indonesia are MSMEs.
Unfortunately, despite being the majority, MSMEs still face difficulties in accessing capital. Although they are considered feasible to receive funding, MSMEs are often deemed not bankable and struggle to meet credit requirements due to collateral issues.
This is where the role of the Indonesian Credit Guarantee Corporation Association (Asippindo) is needed. Asippindo Chairman Diding S. Anwar stated that guarantees greatly assist those who have economically feasible and prospective productive businesses but are not bankable or face obstacles in meeting collateral requirements. MSMEs are still considered less competitive than large companies in obtaining credit.
“Asippindo members play a role in bridging MSMEs with financial institutions,” said Diding S. Anwar, highlighting how MSMEs are still at a disadvantage compared to large companies when it comes to securing credit.
As an association engaged in the field of guarantees, Asippindo continues to promote awareness and the importance of guarantees. In general, a guarantee is defined as an activity of providing assurance for the fulfillment of the guaranteed party's financial obligations to the guarantee recipient if the guaranteed party fails to meet its obligations based on an agreed contract. Asippindo, as an association of guarantee companies, focuses on supporting the people’s welfare and contributing to job creation.
Asippindo’s members consist of 19 companies, including state-owned enterprises (BUMN), regional government-owned enterprises (BUMD), and private companies. Members of Asippindo are optimistic that they can help meet the credit distribution needs of the MSME sector through guarantees, with capital capacity reaching up to Rp100 trillion.
Regarding regulations, guarantee activities are currently governed by various rules, such as:
- Presidential Regulation No. 2 of 2008 concerning Guarantee Institutions.
- Minister of Finance Regulation (PMK) No. 222/PMK.010/2008 concerning Credit Guarantee Companies and Credit Re-Guarantee Companies.
- PMK No. 99/PMK.010/2011 regarding amendments to PMK No. 222/PMK.010/2008.
- Financial Services Authority Regulation (POJK) No. 5/POJK.05/2014 concerning Business Licensing and Guarantee Institutions.
- POJK No. 6/POJK.05/2014 concerning the Operation of Guarantee Institution Businesses.
- POJK No. 7/POJK.05/2014 concerning the Inspection of Guarantee Institutions.
Unfortunately, there is currently no specific law on guarantees. A law is considered essential, as the guarantee sector is crucial for MSMEs to improve access and affordability to government programs aimed at supporting the people. The draft law (RUU) also outlines the authority of guarantee companies, stating that guarantees can only be provided by licensed guarantee companies.
Therefore, the House of Representatives (DPR), through the Golkar Party faction as the initiator, together with Asippindo, is confident that the enactment of a Guarantee Law will significantly help MSMEs develop productive and feasible businesses.
The Guarantee Bill (RUU Penjaminan) has already been included in the 2015 national legislative program (Prolegnas) priority list. As the initiator, the Golkar faction sees the need for a Guarantee Law and has expressed its commitment to pass the bill into law within the year. The Golkar faction believes that Indonesia's economic growth is largely driven by MSMEs, as the majority of the workforce is absorbed by this sector.
The Guarantee Law is intended to ensure that the guarantee industry has a level playing field comparable to other industries and plays a more optimal role in increasing financial inclusiveness. This is crucial considering that Indonesia’s financial inclusion rate currently stands at only 20%.
Guarantee activities have great potential to improve financial inclusion, literacy, and education, as guarantees help the public enhance access to finance, credit, and relationships with financial institutions. (team)