Based on the REGIONAL REGULATION (PERDA) of Central Java Province No 2 of 2014 concerning Perseroan Terbatas Penjaminan Kredit Daerah Provinsi JawaTengah, the purposes and objectives of the Establishment are :
- The purpose of the establishment is to improve funding capabilities and to facilitate business activities in order to increase regional economic growth.
- The purposes of the formation of PT. Jamkrida Jateng are :
- to provide financing guarantee services to Micro, Small, Medium Enterprises and Cooperatives;
- to increase economic activities in the region; and
- to increase the source of Local Revenue.
Jamkrida Jateng is a Guarantee Company in accordance with Law No. 1 of 2016 concerning Guarantees and Regulation of the Financial Services Authority Number 2/POJK.05/2017 concerning the Implementation of Guarantee Institution by carrying out the following business activities :
- Credit Guarantee for financial institutions or non-financial institutions
- Credit Guarantee and/or loans distributed by saving and loan cooperatives to their members;
- Surety Bond
- Counter Bank Guarantee
- Customs Bond
- Letter of Credit (L/C)
- Law No. 1 of 2016 concerning Guarantees
- Regulation of Financial Services Authority (POJK) No.1/POJK.05/2017 concerning Licensing and Institution of Guarantee Agency
- Regulation of Financial Services Authority (POJK) No.1/POJK.05/2017 concerning the Implementation of Guarantee Agency Business
- Regulation of Financial Services Authority (POJK) No.1/POJK.05/2017 concerning Guarantee Agency Governance
- Regional Regulation (Perda) of Central Java Province No 2 of 2014 concerning Perseroan Terbatas Penjaminan Kredit Daerah Provinsi JawaTengah
There are 2 (two) Credit Guarantee mechanisms :
- Conditional Automatic Cover (CAC) is a conditional automatic guarantee given to a number of applying MSMEs that have met the requirements as agreed between Jamkrida Jateng and Creditors/Implementing Banks
- Case By Case (CBC) is a guarantee given upon the evaluation of MSME's business feasibility in case by case basis
Currently, the guarantee business model adopted by Jamkrida Jateng is categorized in 2 (two) categories, namely :
- Indirect Guarantee
i.e a part of the bank credit process (follow the bank). Jamkrida Jateng follows the provisions of financial institutions/cooperatives because credit guarantee is part of mitigating bank credit risks.
The purposes of direct guarantee are
(1) to improve financial access
(2) for marketing the guarantee products.
In addition, Jamkrida Jateng serves as a credit reference agency, a process in which Jamkrida Jateng looks for potential customers and then refers them to commercial banks or BPR or cooperatives to obtain financing. Jamkrida Jateng will conduct an assessment related to the feasilibility of the prospective debtors.
- Credit/Loan/Financing Guarantee: MSMEs, Commercial Banks, BPR, Cooperatives, Financing Institutions
- Surety Bond/Bank Guarantee: Contractor
- Customs Bond : Companies that use customs services
- Others: Guarantee Agent, Brokers, Hospitals
APPLine is an independent service for Business Partners of Jamkrida Jateng, including guarantee certificate service issued by PT Jamkrida Jateng through its system and is equipped with QR Code (Barcode) that can be printed by Financial/Non-Financial Institutions themselves.