MANADO | The credit guarantee business of PT Penjaminan Kredit Indonesia Syariah (Jamkrindo Syariah) is progressing this year. As a result, the gearing ratio or the amount of loans compared to Jamkrindo Syariah’s own capital is becoming increasingly tight.
This has made the distribution of guarantees more limited. Kadar Wisnuwarman, President Director of Jamkrindo Syariah, acknowledged that the company's gearing ratio is currently almost at its limit. This is due to the gearing ratio regulation being too restrictive for the credit guarantee business.
According to regulations, the maximum gearing ratio for credit guarantees is 40 times the assets. However, only 10 times can be used for productive credit.
In fact, productive credit is the main business area that Jamkrindo Syariah focuses on, accounting for 95% of its credit guarantee portfolio.
Currently, Jamkrindo Syariah’s assets amount to approximately IDR 280 billion. This means the maximum outstanding volume of productive credit that can be guaranteed is IDR 2.8 trillion, while the outstanding guarantees at Jamkrindo Syariah have already reached IDR 2.7 trillion.
This condition has narrowed the company’s business operations. Therefore, Jamkrindo Syariah is requesting leniency from the Financial Services Authority (OJK) regarding the gearing ratio regulation. "Specifically, to eliminate the distinction between productive and consumer credit guarantees," said Kadar.
With this, the maximum gearing ratio of 40 times could be utilized for any type of guaranteed credit. If this relaxation is granted, the maximum outstanding credit that Jamkrindo Syariah can guarantee could reach IDR 11 trillion.
"At the very least, we are requesting that this relaxation be applied to sharia guarantees, as the trend is indeed more focused on productive credit," Kadar added.
Jamkrindo Syariah targets new credit guarantees to reach IDR 7 trillion in 2016, an increase of 84% compared to the realization in 2015.
Meanwhile, from the kafalah service fee (IJK), Jamkrindo Syariah sets a target of IDR 99 billion. This year’s IJK target jumps 167% from last year's achievement of IDR 37 billion. As of May 2016, the IJK value has reached IDR 31 billion, equivalent to 31% of the annual target. (www.tribunenews.com)