GOING BEYOND GUARANTEE FOR MICRO, SMALL AND MEDIUM ENTERPRISES - PowerPoint PPT Presentation

“GOING BEYOND GUARANTEE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) ” Presented by : ASKRINDO - INDONESIA Sumarno IB Made Jayandana Kasimin AA Gede Mayura

I. MSME’S Profile in Indonesia II. Program “Nawacita” to encourage MSMEs III. KUR IV. Askrindo at a Glance V. The Role of Askrindo : Going Beyond Guarantee for MSMEs VI. Conclusion 2

MSME’S Profile in Indonesia **) Projection 60% of GDP contribution 9 of 10 Workforces 97,2% Workers MSMEs Source: 1) www.depkop.go.id, analyzed 3 2) www.bi.go.id

MSME’S Profile in Indonesia Source : Bank Indonesia 4

“ Nawacita” Program to encourage MSMEs Nawacita : “Vision, Mission And Working Programs Of Presidential Joko 'Jokowi‘ Widodo” STRATEGI C I NI TI ATI VES : 1. Protection & security for Indonesian people PEOPLE 2. Build the effective, democratic and ECONOMY good corporate governance (Ekonomi 3. Strengthen Indonesian rural areas Kerakyatan) 4. Reformation system and law enforcement 5. Improve Indonesia’s education system 6. Economy independence by encouraging the strategic sectors of the domestic economy 7. Improving people's productivity and competitiveness in the international market 8. Revolution of national character 9. Strengthen diversity and social restoration 5

“ Nawacita” Program to encourage MSMEs STRATEGI C I NI TI ATI VES : PEOPLE ECONOMY (Ekonomi Kerakyatan) Vision : To develop People Economy based on people's economic strength to independently manage resources the Micro, Small and Medium Enterprises (MSMEs) Mission :  Encouraging Affordability  Strengthening the financing sources  Strengthening the capabilities of MSMEs  Leveling distribution of wealth 6

“ Nawacita” Program to encourage MSMEs Roadmap People Increasing the number of MSMEs that have Economy high competitiveness and sustainable growth in MSMES business 650,000 units per year 2017 Coordination The formation of 200 clusters by 5000 KUR MSMEs, which had an average increase in 2018-2019 business volume of 20% / year Comprehensive Development Implementation 20 cluster MSMEs Implementation of micro-financing to 1,000,000 customers / landless through 500 units of service 7 7

KUR ( GOVERNMENT SUBSIDIZED LOANS FOR MSMEs) KUR is Credit/Financing of working capital and/or investment to Micro, Small, and Medium Enterprise in a productive business and feasible but not bankable with a credit limit up to IDR 500 million which is partially guaranteed by government through the credit guarantee institution 8

KUR ( GOVERNMENT SUBSIDIZED LOANS FOR MSMEs) • Accelerate real sector development and empower micro, small and medium enterprises and cooperatives (MSMEs). • Increase access to finance of MSMEs GOAL and develop their access to financial institution. • As part of poverty alleviation efforts and measures to expand job opportunities. 9

KUR ( GOVERNMENT SUBSIDIZED LOANS FOR MSMEs) KUR Distribution Based on Economic Sector July 2017 Source : Coordinating Minister for the Economy. 10

KUR ( GOVERNMENT SUBSIDIZED LOANS FOR MSMEs) Perfor orma mance ce I Indica cator or K KUR (Mon onthly) Rp Million Disbursment Micro Credit Disbursment Ritel Credit Disbursment Source : Coordinating Minister for the Economy. 11

KUR ( GOVERNMENT SUBSIDIZED LOANS FOR MSMEs) Per Perfo formance I e Indi dicator KU KUR ( (Quarter erly) 120,000,000 114,065,855 100,000,000 94,261,434 92,344,229 80,000,000 69,586,744 Plafond (Rp Million) 60,000,000 Number MSMEs 45,090,892 52,180,429 Outstanding (Rp Million) 40,000,000 41,975,184 43,334,584 20,000,000 19,581,442 19,328,213 5,420,281 4,359,715 2,023,563 2,343,362 848,193 - QIII-2016 QIV-2016 QI-2017 QII-2017 QIII-2017 12 Source : Coordinating Minister for the Economy.

ASKRINDO Contribution to KUR KUR GUARANTEE (PT. ASKRINDO) SINCE 2007 – July 2017 13

ASKRINDO Contribution to KUR KUR GUARANTEE (PT. ASKRINDO) SINCE 2007 – July 2017 NPM (% ) NPG (% ) Claim Ratio (% ) 14

ASKRINDO AT A GLANCE Company Name PT Asuransi Kredit Indonesia (Persero) or abbreviated as PT Askrindo (Persero). Line Of Business Insurance and Guarantee (Assignment by the Government) Company Status State-Owned Enterprise (Badan Usaha Milik Negara/BUMN). Ownership 100% owned by Republic of Indonesia Date of Establishment : 6 April 1971. Legal Basis of Establishment: Government Regulation (PP) No. 1 dated January 11, 1971, on the Equity Participation of the Republic of Indonesia for the Establishment of Credit Insurance Company. 15

ASKRINDO AT A GLANCE Askrindo has 3 (three) consolidated subsidiaries and all of them are currently operated. Subsidiaries PT Reasuransi Nasional I ndonesia Line of Business : General Reinsurance PT Jaminan Pembiayaan Askrindo Syariah Line of Business : Sharia Waranty PT Askrindo Mitra Utama Line of Business : Insurance Agent CORPORATE VISION MISSION CULTURE VALUES • Engaging in the business of underwriting that supports • Integrity Being superior risk national economic development, especially in the • Professional insurer company with Government's program to develop SMEs and other • Cooperation global services to corporate businesses. • Inovation support the national • Carry out underwriting business with a global services; • Excellence economy • Provide benefits to the stakeholders by implementing good corporate governance, internal control system and risk management. 16

ASKRINDO AT A GLANCE FINANCIAL HIGHLIGHT ASSET EQUI TY EAT 17

THE ROLE OF ASKRINDO Going Beyond Guarantee for MSMEs NON BANK BANK OBLIGEE SELLER CUSTOMS FINANCIAL INSTITUTIONS ASKRINDO (One Stop Services) DEBITOR PRINCIPAL BUYER CUSTOMER IMPORTER TRADE CREDI T LOAN SURETY CUSTOM CREDI T 18 GUARANTEE GUARANTEE I NSURANCE 18

A THE ROLE OF ASKRINDO Going Beyond Guarantee for MSMEs Credit Proposal Credit Decision CREDI T AGREEMENT COLLATERAL Run business to pay the debt CREDI T I NSURANCE AGREEMENT Collateral Subtitution Institution Run business Independent 19

CONCLUSION  Micro, Small and Medium Enterprises (MSMEs) have an important and strategic role in national economic development. One of the ways to advance the MSMEs is improving the ability of MSMEs for business or financial management and enlarge the financial access for MSMEs.  MSMEs are the main agenda in Indonesia’s economic development. In line with 9 Program Nawacita through strategic initiatives “people economy”, government supporting the MSMEs through the New Scheme of Government Subsidized for Loan MSMEs (KUR).  The overall objective of KUR programme is to accelerate the development of economic activities in the real sector to alleviate poverty and expand work opportunities.  Askrindo role in beyond guarantee for MSMEs : • Maintaining business continuity of MSMEs is to provide protection against risk of credit default through KUR Guarantee products • As an institutional collateral substitution Askrindo role is beside to guarantee loans MSMEs is to maintain the liquidity of bank. 20

THANK YOU PT Asuransi Kredit Indonesia (Persero) Jl. Angkasa Blok B-9, Kav.8 Kota Baru Bandar Kemayoran Jakarta Pusat 10610 Indonesia Phone : 021-6546471/72 Fax : 021-6546519 @Ale/andes