Jamkrida Jatim Seeks IDR 100 Billion Capital Injection to Boost MSME Loan Guarantees
PT Jamkrida Jawa Timur has explained the reason for its request for an additional IDR 100 billion in capital injection from the East Java Provincial Government, which is aimed at strengthening its credit guarantee capacity for micro, small, and medium enterprises (MSMEs).
President Director of PT Jamkrida Jawa Timur, Untung Heri Sukariyanto, stated that the additional capital would strengthen the company’s capital structure while enhancing Jamkrida’s ability to provide credit guarantees to MSMEs in East Java.
“This additional capital injection of IDR 100 billion will increase the credit guarantee capacity at Jamkrida Jatim,” Untung said during a public discussion themed ‘BUMD Synergy Ahead of the Capital Injection for PT Jamkrida Jawa Timur’ at the East Java DPRD Building in Surabaya on Tuesday.
He explained that Jamkrida Jatim had previously proposed a capital injection of IDR 300 billion. However, during discussions with the East Java Provincial Government and the East Java DPRD, the agreed value was reduced to IDR 100 billion.
According to him, the additional capital is necessary because Jamkrida’s current guarantee capacity is approaching the maximum limit stipulated by the Financial Services Authority (OJK). Untung noted that with the existing capital, Jamkrida Jatim has a credit guarantee capacity of up to approximately 9 trillion rupiah. Meanwhile, the realised guarantees have reached around IDR 8.2 trillion.
“This means operations are still running, but the room for expansion is already very limited, hence the need for additional capital injection,” he said.
Untung explained that the additional IDR 100 billion capital injection could potentially increase the guarantee capacity by up to IDR 4 trillion, referring to the applicable guarantee ratio provisions. The impact, he said, will be directly felt by the MSME sector. Currently, the average MSME credit guaranteed by Jamkrida Jatim is around IDR 37.5 million per business actor.
“With the additional IDR 100 billion capital, it is estimated that Jamkrida can expand its guarantee coverage to around 106,000 MSMEs,” he stated.
He explained that the authorised capital of PT Jamkrida Jatim is IDR 600 billion, of which IDR 180 billion has currently been fulfilled, leading to the proposal for an additional IDR 100 billion in capital injection. The capital increase for Jamkrida Jatim is part of efforts to strengthen the role of regional-owned enterprises (BUMD) in supporting regional economic growth through access to financing for the productive sector.