JAKARTA: The total credit guaranteed by Perum Jaminan Kredit Indonesia (Jamkrindo) from January to August this year reached Rp21 trillion, or 80.7% of this year’s overall guarantee target of Rp26 trillion.
Jamkrindo President Director Nahid Hudaya stated that the increase in guarantees has been quite promising compared to the limited levels seen at the beginning of the year. He mentioned that credit guarantee growth from May to August has shown significant improvement, and this growth also encompasses People’s Business Credit (KUR).
"Alhamdulillah, our guarantees have now reached Rp21 trillion, including KUR, while our target for this year is Rp26 trillion. We have not revised our target considering that only three months remain in this year," he said following the signing of the KUR memorandum of understanding in Jakarta yesterday.
Regarding KUR guarantees specifically, Nahid noted that Jamkrindo guaranteed over Rp7 trillion during the January–August period, marking a significant increase compared to the same period last year. The KUR guarantee target for this year is set at Rp8.5 trillion, which has been achieved at 82.3%.
Last year, KUR guarantees were only Rp1.6 trillion compared to Rp2.5 trillion in 2008, due to less favorable economic conditions and the KUR guarantee provisions being considered too strict.
Credit Expansion
On the same occasion, Coordinating Minister for Economic Affairs Hatta Rajasa mentioned that one of the key factors driving credit disbursement growth is the government's effort to increase the KUR ceiling without collateral from Rp5 million to Rp20 million.
"This is an effort to facilitate access for micro industries. The Rp20 million ceiling uses the main business as collateral," said Hatta.
In response, Nahid expressed that the relaxation of government policies regarding the credit ceiling is expected to boost the absorption of micro credit guarantees, including KUR, which have previously been constrained.
According to records from Bisnis, the total credit guaranteed by Jamkrindo has steadily increased over the last three years. In 2007, the total was Rp17.02 trillion, which rose to Rp23.7 trillion in 2008, and reached Rp25.4 trillion last year.
Bank Indonesia Deputy Governor Budi Rochadi added that the non-performing loan (NPL) ratio for KUR has decreased with the significant credit expansion. In May 2010, the KUR NPL was recorded at 6.03%, but it has now decreased to 4.92%.
"The NPL figure is gross, and we cap maximum bad credit at 5%, so the current level is still below our maximum threshold," Budi explained.
Nahid also mentioned that the low level of defaults in the guarantee sector is evidenced by the total claims from 2008 to 2010, which amounted to only Rp60 billion.
Furthermore, PT Bank Tabungan Negara (Persero) Tbk is targeting KUR disbursements of Rp650 billion this year. BTN President Director Iqbal Latanro is optimistic that this target can be met by year-end, as the company’s KUR disbursement has already reached 70% of its target.
Additionally, PT Bank Negara Indonesia (Persero) Tbk has disbursed KUR totaling Rp1.87 trillion as of the end of August 2010. BNI Deputy President Director Felia Salim noted that small business credit disbursement is a key focus for the bank, having been provided to 14,093 small businesses across Indonesia.
Felia explained that these small business credits have been distributed among several sectors, with trade and households accounting for 51%, agriculture 38%, and the services sector 5%.
"We hope that this small business credit facility can stimulate regional and national economic development by fostering small business growth and empowering new entrepreneurs," she said.
BNI disburses KUR with a ceiling of up to Rp500 million for small businesses.
(source: bisnis.com)