Presented by: Jamkrindo

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KUR Guarantee ProgramA Government Credit
Guarantee Program to Boost the Economy

• Presented by Jamkrindo

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Background of KUR Guarantee Program
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The Legal Backgrounds of KUR Guarantee Program
Presidential Decree of Policy of Real Sector
Development Acceleration and MSMEs Empowerment
MoU among stakeholders 9 related ministries/
department, credit guarantee companies, and 6
banks
Regulation of the Ministry of Economic
Coordination about SOP of Implementa-tion KUR
Legal Background
Regulation of the Ministry of Finance for KUR
Credit Guarantee Facility
KUR Credit Guarantee Agreement between the
Indonesian Government and Jamkrindo
KUR Credit Guarantee Agreement between each
designated bank and Jamkrindo
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The Terms Conditions of KUR Guarantee Program
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The Terms Conditions of KUR Guarantee Program
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The Client of KUR Guarantee Program
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Scheme of KUR Guarantee Program gtgt Direct Lending
Credit guarantee agreement
Credit agreement
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Scheme of KUR Guarantee Program gtgt Indirect
Lending
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KUR Guarantee Portfolio of Jamkrindo
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KUR Guarantee Portfolio of Jamkrindo
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NPG of KUR Guarantee Program
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Method of KUR Guarantee Approval

• The bank perform the analysis of the credit and
  it has to comply with the standard of the credit
  worthiness in the bank itself
• The applications of KUR credit guarantee to
  Jamkrindo are proposed by the banks on behalf of
  the MSMEs, and it is approved automatically

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Method of KUR Guarantee Approval

• At the beginning of the program, both Jamkrindo
  and bank are agreed on some terms and conditions
  that should be met by the prospective MSMEs to
  get both the KUR credit from the bank as well as
  the KUR credit guarantee from Jamkrindo.
• The bank perform the analysis of the credit and
  it has to comply with the standard of the credit
  worthiness in the bank itself.
• The applications of KUR credit guarantee to
  Jamkrindo are proposed by the banks on behalf of
  the MSMEs, and it is approved automatically.

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Method of KUR Guarantee Monitoring

• Indirect monitoring (on desk monitoring)
  Jamkrindo is updating the credit performance
  based on the credit report from the bank.
• Direct monitoring (on site monitoring), Jamkrindo
  itself or together with the bank are performing
  on the spot visit to the location to supervise
  the business of the MSMEs.

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Method of KUR Guarantee Claim Subrogation

• The bank is allowed to propose the claim
  application if it meets condition as follows
• The client is not able to fulfill the credit
  settlement at the end of the credit period
• The credit is categorized as Non Performing Loan
  based on the criteria of the Central Bank of
  Indonesia
• The business of the client is insolvent
• Calculation of the amount of the claim of KUR
  Credit Guarantee
• Claim Payment 70 x (outstanding credit the
  late charged)

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The Challenges of KUR Guarantee Program

• Because the conditional automatic approval,
  Jamkrindo does not know the MSMEs and their
  character. The credit guarantee agreement between
  Jamkrindo and the bank that accommodated all the
  requirements related to the eligibility of the
  MSMEs and their character is expected to be the
  tool to minimize the credit risk of KUR in the
  future.
• Jamkrindo could not directly contact the MSMEs to
  learn their business. To monitor the MSMEs
  credit and business, Jamkrindo requires the bank
  to provide some credit report and business
  progress in periodical basis.
• The government develops the KUR scheme only for
  new debtors, in order to provide more un-bankable
  MSMEs to accessing financing and increasing
  employment. While most of the new debtors are
  such new entrepreneurs, then their businesses are
  perceived as relatively high risk.
• One of the key success factors of KUR credit
  program is the increasing number of employment.
  To achieve this objective, there are several
  things to be supported to the MSMEs, including
  the assistance from the bank. Unfortunately, to
  provide such assistance is meaning a higher
  credit cost.

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KUR Guarantee Program to Boost the Indonesian
Economy

• The scheme of KUR Guarantee Program has an impact
  on the economic value added. By using the scheme,
  there are many MSMEs are taking benefit from the
  loan to develop the business and the real sector.
  KUR Guarantee Program could increase of the
  business yield, and at the same time the
  Indonesian Gross Domestic Product (GDP) will be
  growing up too.
• The increasing business of the MSMEs has direct
  impact on the decreasing unemployment because
  there is new jobs creation. Reducing the
  unemployment means that there is improvement on
  the people welfare. As a result, KUR Guarantee
  Program does not only boost the national economy,
  but also on the welfare distribution.

• The development of KUR credit guarantee is an
  appropriate policy to boost the Indonesian
  economy.
• Indonesian Government has very great concerns on
  the KUR credit guarantee program and the
  government ascertains that the application of the
  program is appropriate to the goal of the program
  by performing an auditing to the related
  institution.
• Facing some challenges regarding the KUR program,
  then The Government and the stakeholders should
  perform some supporting in order to convince that
  KUR Guarantee Program will always improve in the
  next period.

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Thank You