JAKARTA - Perum Jamkrindo has formed a partnership with Credit Guarantee Corporation Malaysia Berhad (CGCMB), a Malaysian credit guarantee company, as part of an initiative to support Micro, Small, and Medium Enterprises (UMKM) in accessing both local and international markets.
This partnership was marked by a visit from a CGCMB delegation, including several directors: Teoh Kok Lin, Mohammed Rashdi bin Muhammed Ghazali (Non-Executive Director), Leong Weng Choong (Chief Business Officer), Jenny Hoh Chiew Moi (Vice President), Puvana Vighnesvaran (Assistant Vice President), and Farah Farhana (Executive).
Perum Jamkrindo's President Director, Diding S. Anwar, welcomed the CGCMB delegation during their visit on Tuesday, April 4, 2017, at Perum Jamkrindo's office in Jakarta. He expressed that Perum Jamkrindo appreciated CGCMB’s role as a Developmental Partner in the CGC Development Program since 2016, which supports UMKM in accessing local and international markets.
Diding further stated that Perum Jamkrindo also welcomed CGCMB’s cross-border initiatives, which were highlighted during the 29th ACSIC (Asian Credit Supplementation Institutions Confederation) Conference in Thailand last year, focusing on business matching, cross-border advisory services, and cross-border guarantees within the ASEAN region.
“We are delighted with this visit, and we hope the discussions and shared insights will benefit both Perum Jamkrindo and CGCMB, as well as UMKM in Indonesia and Malaysia. We propose that Perum Jamkrindo and CGCMB Malaysia formalize this collaboration in a Memorandum of Understanding (MoU) to support cross-border UMKM initiatives,” said Diding.
Regarding the cross-border initiative, Diding explained that Perum Jamkrindo has focused its efforts on providing management consultations and mentoring for UMKM, helping them grow and move to the next level. This is particularly important for UMKM that require market access or supply chains in Malaysia. Therefore, the collaboration between Perum Jamkrindo and CGCMB will be expanded to include management consultations, market creation, or outlet support, with assistance from both Indonesian and Malaysian stakeholders.
Perum Jamkrindo, a state-owned guarantee company, has been serving UMKM in Indonesia for 47 years by providing guarantee services in collaboration with both banking and non-banking partners. Perum Jamkrindo’s services include commercial guarantees and government assignment guarantees such as Kredit Usaha Rakyat (KUR) and Warehouse Receipt System (Sistem Resi Gudang / SRG).
Currently, Perum Jamkrindo operates through 9 regional offices and 56 branches, supported by 1,528 staff members. The company also owns a subsidiary, PT Penjaminan Jamkrindo Syariah (Jamsyar), established three years ago. The legal framework for guarantee activities in Indonesia is solid with the enactment of Law No. 1/2016 on Guarantee and OJK Regulations issued in 2017.
The guarantee activities currently handled by Perum Jamkrindo are primarily collective or conditional automatic cover, where UMKM first approach the bank, which then submits the guarantee request to Perum Jamkrindo. With the implementation of the Guarantee Law and OJK regulations, guarantee activities are now moving toward a more proactive approach through Direct Guarantee. This allows Perum Jamkrindo to select worthy UMKM to be guaranteed and to submit financing applications to banks and non-banks.
During CGCMB's visit to Jakarta, various activities took place, including visits to Perum Jamkrindo’s UMKM partners, both local and those with cross-border potential. This visit also provided CGCMB the opportunity to discuss financing schemes for UMKM in Indonesia, exploring the challenges and potential opportunities available.