ilovemalang – Jamkrindo The Solution for Credit Guarantee for Your MSME Business
Micro, Small, and Medium Enterprises (UMKM) are among the key drivers of the economy, both for the community and the country. The need for special attention to UMKM arises from their significant potential in Indonesia.
One of the common challenges faced by several UMKM in Indonesia is access to capital. Often, some UMKM with viable businesses are unable to obtain financing or capital due to reasons such as a lack of collateral, unclear financial reports, small business scale, and other factors that prevent creditors from providing financing.
To address these issues, credit guarantee companies have emerged to help UMKM access financing or loans from financial institutions. The most prominent institution fighting for UMKM is Perum Jaminan Kredit Indonesia, commonly known as Jamkrindo.
Met during the Malang City Expo 2017 event, Mr. Doni Nugroho, Head of Business Guarantee & Warehouse Receipt System at Jamkrindo's Surabaya Branch, explained that Jamkrindo is the right partner for your UMKM.
"Jamkrindo is a credit guarantee company, a state-owned enterprise (BUMN) that helps develop viable UMKM to obtain capital or financing, even if they lack sufficient collateral or guarantees," he said.
Originally focused on providing guarantees for cooperatives in the 1970s, Jamkrindo has now expanded its scope and, in 2008, became Perum Jamkrindo to further develop UMKM in Indonesia. Jamkrindo does not directly disburse loans to UMKM but assists UMKM entrepreneurs by providing guarantees to potential debtors, making it easier for them to secure financing from financial institutions.
"UMKM entrepreneurs can apply for a guarantee with us, and we will analyze the feasibility of the business. If we deem it viable, Jamkrindo will provide a guarantee to the financial institution as part of the collateral required for loan disbursement. We help debtors or customers who lack sufficient collateral to ensure their loan is approved by financial institutions," he added.
Jamkrindo offers several types of guarantees: Kredit Usaha Rakyat (KUR) Guarantee: A credit guarantee for UMKM in productive and viable business sectors that are not yet bankable, with loan amounts of up to IDR 500,000,000 (five hundred million rupiah), KPR Sejahtera FLPP Guarantee: A collaboration between banks and the Ministry of Public Works and Public Housing of the Republic of Indonesia, offering low interest rates, affordable installment payments, and fixed installments for low-income communities, Warehouse Receipt System (SRG) Guarantee: Guarantees the rights and interests of Warehouse Receipt (RG) holders or recipients of security interests against failure, negligence, or inability of Warehouse Managers to store and deliver goods as stated in the Warehouse Receipt.
In addition to the programs mentioned above, Jamkrindo also offers several other programs that can help UMKM entrepreneurs grow their businesses, such as Surety Bond, Customs Bond, Sharia Guarantee, and many others.
The hope for the future is that, with Jamkrindo's support, UMKM entrepreneurs will no longer face difficulties in accessing capital for their businesses, allowing them to focus more on improving production quality to face the ASEAN Economic Community (AEC) and compete with foreign products.