Perum Jamkrindo has signed a Memorandum of Understanding (MoU) with the Indonesian Real Estate Association (REI) to address common issues in housing development financing for REI members that are Small, Medium, and Micro Enterprises (UMKM-K) across Indonesia.
Through this collaboration, all REI members will have access to financial sources from both Bank and Non-Bank Financial Institutions for projects they are currently working on or will undertake. This will be made possible through the guarantee facilities provided by Perum Jamkrindo, including both Cash Loan and Non-Cash Loan guarantees.
The signing ceremony took place at the Veranda Hotel in Jakarta on Friday, April 6, 2018, and was attended by Randi Anto, Director of Perum Jamkrindo, and Soelaeman Soemawinata, Chairman of REI's Central Board, along with Amin Mas'udi, Director of Business Guarantee at Perum Jamkrindo, Sulis Usdoko, Director of HR, General Affairs, and Compliance, and Paulus Totok Lusida, Secretary-General of REI.
Randi Anto, the Director of Perum Jamkrindo, stated that this collaboration is a concrete solution to build synergies between BUMN and the private sector in supporting the national "One Million Houses" program. He explained that one of the main obstacles developers face is accessing funding sources. With the presence of Perum Jamkrindo, REI members can take advantage of guarantee products like Cash Loan and Non-Cash Loan to help finance their housing projects or to support housing loans (KPR) marketed by REI members.
"This MoU represents a synergy that supports UMKM-K actors who are Feasible But Not Yet Bankable in developing their businesses. Perum Jamkrindo’s guarantee products can meet all the needs of guarantees in both subsidized and non-subsidized property sectors," Randi Anto added.
This partnership will provide REI members, especially those in the UMKMK sector, with access to financing from banks for housing development, particularly for housing programs across Indonesia.
The collaboration is expected to eliminate doubts among creditors when providing financing to REI developers, as the guarantees from Perum Jamkrindo will be in place.
According to data from the Central Statistics Agency (BPS), the contribution of UMKM to Indonesia's economy is significant, reaching 61.41%. However, only 22% of UMKM have access to bank credit, with the rest falling into the "Feasible but Not Bankable" category.
REI developers can now benefit from a variety of guarantee products offered by Perum Jamkrindo, including guarantees for Working Capital Credit for Construction, Housing Ownership Credit (KPR), Supply Chain Financing (SCF), Bank Guarantees (BG), and Surety Bonds. Through this collaboration, Perum Jamkrindo will process guarantees in accordance with the prevailing guarantee regulations for credit applications by REI members, based on the recommendations and selections made by REI.
Supporting Member Capitalization
Soelaeman Soemawinata, Chairman of the Central Board of REI, welcomed the collaboration and hopes it will assist UMKM developers in accessing financing while providing confidence to developers to offer credit with guarantees from Perum Jamkrindo.
He emphasized that facilitating access to financing for REI members, particularly those building subsidized housing in various regions, is one of the strategic initiatives under the current REI leadership. REI will continue to explore other breakthroughs to support working capital financing for the advancement of its members’ businesses.
“With 4,500 member companies across Indonesia, 3,500 of which are developers of affordable housing, it is hoped that they will be able to utilize Perum Jamkrindo’s guarantee facilities so that financing access will no longer be a problem and the housing development targets can be achieved,” he concluded.