Successful Transformation Makes Jamkrindo's Performance Positive

NINA SUSILO

At the seventh stage of the 2022 Bali SME Revival exhibition, small and medium-sized entrepreneurs once again showcased their exquisite products. One of them is metal handicrafts such as piggy banks, lamps, and colorful Bali-inspired ornamental glassware. The photo was taken on Tuesday (August 30, 2022).

JAKARTA, KOMPAS — PT Guarantee Kredit Indonesia (Jamkrindo) recorded solid performance growth throughout 2023. Based on the 2023 financial performance report audited by the Public Accounting Firm (KAP) Tanudiredja, Wibisana, Rintis, and Partners (a member firm of the PWC global network), Jamkrindo managed to record a net profit of IDR 1.44 trillion, up 12.24 percent from the previous year (yoy).

Jamkrindo President Director Akhmad Purwakajaya in his press release, Tuesday (23/4/2024), said that the various strategic initiatives that had been carried out had helped boost the company's positive performance achievements. In the company's business transformation, Jamkrindo emphasizes revenue diversification through optimizing non-assignment businesses and developing business models and business processes.

Apart from that, Jamkrindo also strengthens risk governance and compliance through the implementation of three lines of defense and four eyes principles and also strengthening in the fields of technology and human resources to provide innovative, competitive guarantee services with professional, effective and efficient services on an ongoing basis.

"Various innovations and transformations continue to be made, both in terms of organizational structure transformation, human resource management, technological systems, business and operations, risk management and compliance governance, and finances to strengthen the company's performance sustainably," said Akhmad.

In 2023, Akhmad revealed that Jamkrindo has introduced various guarantee services to facilitate SMEs in accessing financing from financial institutions. This has resulted in an increase in the company's guarantee volume in 2023, which rose by 20.89 percent to Rp 377.63 trillion.

KOMPAS/ SAMUEL OKTORA

The Head of Business Division I of the Indonesian Credit Guarantee Corporation, Hafizah (on the right), along with the Head of Risk Management and SMEs Ratings and Management Consultation Division, Ceriandri Widuri, and Leader of Region IV Bandung, Dody Novarianto (on the left), are reviewing a coffee plantation owned by a Jamkrindo partner in Karamatwangi Village, Cisurupan Subdistrict, Garut Regency, West Java, on Thursday (4/7/2019).

In terms of performance, despite the increase in the number of claim burdens, Akhmad revealed that the increase is still at a well-maintained level. This is supported by the achievement of a net guarantee income growth of 20.45 percent, higher than the growth of the net guarantee burden which stood at 8.10 percent.

Akhmad stated that the positive performance of Jamkrindo cannot be separated from the well-maintained macroeconomic conditions, as well as various strategic policy support from the government and regulators in maintaining economic stability.

Thanks to the support, Jamkrindo was able to navigate its financial performance by recording assets of Rp 32.23 trillion, a 15.07% annual increase (yoy) with equity of Rp 13.35 trillion. "The extraordinary support from all stakeholders gives us optimism and confidence to produce the best performance," he said.

With good performance in 2023, Akhmad is optimistic that Jamkrindo can achieve its targets in 2024. In 2024, Jamkrindo aims to achieve a guarantee volume of Rp 414 trillion. "Various strategies are being prepared, including innovation in technology and digitalization of services, such as the implementation of Jamkrindo Online Suretyship to support the strengthening of non-program business processes, acceleration of business models, robust risk management implementation, and preparation of future talents," said Akhmad.

In addition, in order to support the goals of sustainable development or SDGs, Jamkrindo also implements a social and environmental responsibility program (TJSL) that is implemented evenly in various regions in Indonesia. The program is designed to help realize economic equality and improve the welfare of society. "In every TJSL program of the company, the aspect of sustainable development goals becomes the main focus of Jamkrindo. This is in line with the direction from the Ministry of SOEs, which expects that empowerment programs implemented are in line with the principles of Creating Shared Value or CSV, which places the creation of economic and social value together that can be felt by the wider community," said Akhmad.