Guarantee Industry Poised to Become a Pillar of Productive Financing
Jakarta – The strengthening of the guarantees industry is increasingly seen as vital amid rising demand for financing in the productive sector and for micro, small and medium enterprises (MSMEs), as it plays a strategic role in widening credit access, maintaining the quality of financial intermediation, and underpinning the stability of the national financial system.
The Indonesian Guarantee Association (Asippindo) says the guarantees industry must be strengthened through healthier, prudent, and integrated governance to meet the challenges of national financing amid global economic dynamics.
Chairman of Asippindo, Ivan Soeparno, said the guarantees industry currently holds a more strategic position in supporting national economic growth, especially by expanding MSME and productive sector financing access.
“Guaranteeing is not merely an administrative complement to credit. Guaranteeing is a risk-sharing mechanism that helps connect business needs, especially for MSMEs and cooperatives, with the prudent principles of financial institutions,” he said at the Indonesia Guarantee Summit (IGS) 2026 in Jakarta, on Thursday (21 May 2026).
According to Ivan, amid global economic pressures and dynamics in the financial sector, the guarantees industry is urged to grow in a healthier, more transparent, and more competitive manner to maintain the quality of national financing.
He regards strengthening the guarantees industry as a moment to solidify its direction, including clarifying business models, strengthening governance, and improving risk mitigation.
He added that strengthening the guarantees industry requires policy harmonisation that aligns more closely with other financial service sectors, particularly for products that intersect with the insurance industry.
“With regulations that are proportionate and aligned with the characteristics of the guarantees business, the guarantees industry, insurance, banking, and other financial institutions can complement one another to bolster access to financing and the stability of the national financial system,” he said.
Asippindo considers strengthening the guarantees industry important because this sector helps maintain financial intermediation, expand MSME financing, and spur regional economic growth. In recent years, Asippindo, together with regulators, has continued to push to strengthen the industry ecosystem through improved governance, digital transformation, human resources development, and strengthening the national reinsurance scheme.
In the Indonesia Guarantee Summit 2026 keynote, Airlangga Hartarto, Coordinating Minister for Economic Affairs, represented by Deputy for Coordination of the Management and Development of State-Owned Enterprises in the Ministry of Economic Affairs, Ferry Irawan, stated that strengthening the guarantee industry is a crucial part of supporting the national development agenda.
According to Ferry, the MSME sector currently contributes around 61 percent of Gross Domestic Product (GDP), absorbs 97 percent of employment, and accounts for around 60 percent of national investment. However, many MSMEs are feasible yet not fully bankable, and thus require support from the guarantee industry to broaden access to formal credit.