Perum Jaminan Kredit Indonesia (Perum Jamkrindo) marked its 48th anniversary on July 1, 2018. Founded in 1970, Perum Jamkrindo has become a locomotive for the growth of micro, small, medium enterprises, and cooperatives (UMKMK) in Indonesia through its credit guarantee services.
As the sole state-owned enterprise (BUMN) in the credit guarantee sector, Perum Jamkrindo plays a significant role in supporting the national economy by providing credit guarantees for UMKMK. The company's primary function is to bridge the gap for viable UMKMK businesses that have not met technical banking requirements, particularly collateral, so they can access financing.
Now, in its more mature age, Perum Jamkrindo remains committed to strengthening its strategic role in the national economy. Randi Anto, the CEO of Perum Jamkrindo, stated that the company aims to contribute even more as a pillar for empowering UMKMK, which are the backbone of Indonesia's economy.
“We don’t want to be limited to just being a guarantor. We want to be at the forefront of empowering UMKM,” said Randi during the 48th-anniversary celebration in Jakarta on Monday, July 2, 2018.
To achieve this, Perum Jamkrindo has implemented a ranking system for UMKM to reduce the information asymmetry between UMKM and lenders (both banks and non-banks), which in turn helps reduce acquisition costs. As of 2017, Perum Jamkrindo had ranked 4,288 UMKM.
In addition to the rankings, Perum Jamkrindo also provides various forms of assistance to UMKM, including financial consultation, operational support, and business development. “In 2017, 1,424 UMKM mentored by Perum Jamkrindo successfully upgraded their status,” Randi mentioned.
Perum Jamkrindo is also continuously improving its performance through strategic initiatives and expanding its guarantee market by fostering new partnerships with both banking and non-banking sectors. Strategic studies are being conducted to create guarantee products aligned with the offerings from these institutions.
At the end of 2017, Perum Jamkrindo pioneered a new breakthrough by collaborating with two financial technology (fintech) companies. In this collaboration, Perum Jamkrindo guaranteed loans up to IDR 2 billion per loan for fintech borrowers. “The potential of fintech is enormous, and they need space to grow. Collaboration is key. By working together, we can expand the reach of fintech to the broader public, significantly impacting the economy, especially at the grassroots level,” said Randi.
Further, he emphasized that in order to align strategic goals and create synergy to achieve the targets, solid coordination and effective communication between the Board of Directors, Management, Central Office, Regional Offices, Branch Offices, and Service Units across Indonesia is necessary.
“To that end, all Perum Jamkrindo employees must be committed to achieving the company’s targets according to their duties and responsibilities, always upholding the principles of Good Corporate Governance (GCG). I say, let’s move forward for Jamkrindo. Let’s Change and Grow!!” Randi Anto concluded.
In its efforts to help UMKM grow, Perum Jamkrindo has consistently increased its capacity to provide credit guarantees. Between 2008 and 2017, Perum Jamkrindo guaranteed loans for 14.49 million people under the Credit for People's Business (KUR) program. Between 2013 and 2017, the volume of guarantees provided by Perum Jamkrindo increased at an average annual growth rate of 31.58%.
“For 2018, Jamkrindo targets a guarantee volume of IDR 156 trillion,” said Randi.
Perum Jamkrindo offers various credit guarantee products, including KUR Guarantee, Micro Credit Guarantee, General Credit Guarantee, Multi-purpose Credit Guarantee, Goods Distribution Credit Guarantee, Housing Loan Credit Guarantee (KPR) under the Housing Liquidity Facility (FLPP) scheme, Motor Vehicle Credit Guarantee, Surety Bond Guarantee, Custom Bond Guarantee, Bank Guarantee/Counter Guarantee, Supply Chain Financing Guarantee, and Fintech Lending Guarantee. Additionally, Perum Jamkrindo is entrusted by the government, through Government Regulation No. 1 of 2006, as the Warehouse Receipt System Guarantee Implementing Institution.
HUT Activities
To celebrate its 48th anniversary, Perum Jamkrindo organized various events. With the theme "Kemilau untuk Negeri" (Shining for the Nation), this year’s anniversary celebration featured a range of activities such as the Jamkrindo Startup Challenge, futsal matches with partners, sports competitions across all work units in Indonesia, thematic photo and video contests between work units, innovation competitions, writing competitions, Jamkrindo Talent Show, Jamkrindo in Melody, and more.
In addition to internal events, Perum Jamkrindo also hosted various social initiatives as part of its corporate social responsibility. As a form of community support, Perum Jamkrindo distributed free basic food packages and provided assistance to orphans. Moreover, Perum Jamkrindo organized free cataract surgeries in Sumedang and blood donations.
Perum Jamkrindo also initiated the "Jamkrindo Peduli Pendidikan" (Jamkrindo Cares for Education) movement as a part of its commitment to the education sector. This initiative involved all employees—from the board of supervisors, directors, to staff—who voluntarily collected school uniforms, stationery, and books.
The collected items will be distributed in mid-July 2018 to schools in need, targeting 132 schools across Indonesia, consisting of 66 elementary schools (SD) and 66 junior high schools (SMP).