Jamkrindo recorded a pre-tax profit of IDR 765.71 billion in the 2019 financial year, growing 51 percent from the 2018 profit of IDR 508.28 billion. The profit growth reflects solid business performance and a positive outlook.
As the largest guarantee company in Indonesia, Jamkrindo also closed 2019 with positive performance in terms of guarantee volume. The guarantee volume reached IDR 203.99 trillion, an increase of 17 percent (year-on-year) from the 2018 guarantee volume of IDR 174.74 trillion. The guarantee volume consisted of IDR 59.01 trillion for Credit for People’s Business (KUR) and IDR 144.98 trillion for non-KUR guarantees.
Jamkrindo’s President Director, Randi Anto, mentioned that some sectors driving the growth of guarantees this year include the production, trade services, construction, and non-productive businesses sectors. He further explained that guarantees in the production sector are supported through KUR and other commercial credits.
Furthermore, guarantees in the trade and services sectors are driven by guarantees for commercial retail credit, super-micro credit, the PNM Mekaar Program (Empowering Families for Prosperity), and Ultra Micro Credit (UMi).
“Guarantees in the construction sector are driven by suretyship and bank guarantee counters, and non-productive businesses are still supported by the distribution of FLPP (Housing Financing Liquidity Facility) and multi-purpose loans,” said Randi Anto in a press conference at Jamkrindo’s headquarters in Kemayoran, Jakarta, on Thursday, February 20, 2020.
In terms of revenue, Jamkrindo recorded a net guarantee service fee (IJP) of IDR 2.53 trillion in 2019, an increase of 54 percent from IDR 1.64 trillion the previous year. In addition to business revenue, Jamkrindo also reported positive performance in investment revenue.
Although 2020 is expected to be a challenging year, Randi Anto and the board of directors are optimistic that Jamkrindo can meet its set targets. To achieve this, several strategies will be employed, including strengthening existing and new product portfolios, enhancing BUMN (state-owned enterprises) synergy, focusing on profitability-oriented guarantees, and strengthening and expanding partnership networks.
In 2020, Jamkrindo’s guarantee volume target is IDR 231.5 trillion, an increase of 13.5 percent from the 2019 realization. The details of the target are IDR 95 trillion for KUR guarantees and IDR 136.5 trillion for non-KUR guarantees. “We are optimistic that we can achieve this target,” said Randi.