Economic Review - Perum Jamkrindo Recognizes the Role of Micro, Small, and Medium Enterprises (UMKM)
Perum Jamkrindo acknowledges that Micro, Small, and Medium Enterprises (UMKM) play a crucial role in Indonesia and significantly contribute to the country's economic growth. Despite their importance to the economy, UMKM still face challenges in continuing to grow and develop. One of the main issues is related to capital structure. A strong capital base is essential for UMKM to expand.
This was explained by Sulis Usdoko, Director of Human Resources, General Affairs, and Compliance at Perum Jamkrindo. Given the challenges faced by UMKM, the presence of Perum Jamkrindo becomes crucial. It serves as a bridge for UMKM that have feasible businesses but do not meet the technical requirements of the banking sector, making it difficult for them to access financing. The company provides credit guarantee schemes to address this gap.
"In Indonesia, many UMKM are actually feasible but not bankable. It is difficult for them to access capital from banks. Therefore, UMKM must be supported by guarantee companies, so they can receive financing/credit from banks or non-bank financial institutions. Essentially, credit guarantees make it easier for UMKM to obtain credit from banks or non-bank financial institutions, even when they have problems with collateral," Sulis explained during the 2018 Jamkrindo Media Gathering event (October 3).
Sulis elaborated that as a company given a special mandate by the government to provide guarantees for UMKM and cooperatives (UMKMK), Perum Jamkrindo has long been a pillar in empowering UMKMK. In addition to offering credit guarantees, Perum Jamkrindo has also innovated by implementing ranking systems and providing mentoring to UMKM.
According to Sulis, based on BPS data, there are more than 50 million UMKMK in Indonesia. However, this data is only an estimate and lacks precise identification ("by name by address"). Despite many ministries and agencies handling UMKMK, none of them have a real database of UMKMK. He also sees a strategic opportunity in developing human resources at Perum Jamkrindo, especially to support the development of UMKM. In the future, Perum Jamkrindo's human resources are expected to lead in the field of guarantees.
"Jamkrindo will continuously strengthen its human resources. One core competency that must be mastered is expertise in guarantee products, risk management, expertise in managing UMKMK, and managing the UMKMK database," he stated.
As a company that sets the benchmark for all guarantee companies in Indonesia, Sulis emphasized that the human resources at Perum Jamkrindo must constantly innovate. Leading in the guarantee sector means being at the forefront, not only in business and operations but also in infrastructure and all aspects related to the guarantee industry and UMKM.
"Jamkrindo sets the benchmark for all guarantee companies in Indonesia, becoming a role model for regional guarantee companies (Jamkrida)," he added.
As of now, Jamkrindo’s consolidated operational performance is as follows: the total realized guarantee volume up to September reached IDR 126 trillion. The largest share, 80% or IDR 85.18 trillion, was obtained from non-KUR guarantees, while the remaining IDR 41.30 trillion was from KUR guarantees. As of September 30, 2018, Perum Jamkrindo's total assets were IDR 15.51 trillion, with equity amounting to IDR 11.09 trillion.
Currently, Perum Jamkrindo has an extensive network with 9 regional offices, 1 specialized branch office, 56 branch offices, and 16 service unit offices. In 2018, Perum Jamkrindo accelerated its business with several key strategies, including innovation and business automation, improving guarantee risk management, fostering synergies with other companies, and enhancing the effectiveness of human resource management through the "Let’s Change and Grow" spirit.