Palangka Raya to Expand Financing Cooperation with Jamkrindo

The Palangka Raya City Government in Central Kalimantan and PT Jaminan Kredit Indonesia (Jamkrindo) Palangka Raya Branch plan to elevate their cooperation from the departmental level to the city government level, thereby supporting broader financing for various development programmes and community economic empowerment. Palangka Raya Regional Secretary Arbert Tombak stated on Tuesday that the enhanced cooperation was discussed in a meeting as an effort to strengthen synergy in providing wider access to financing, including for micro, small and medium enterprises (MSMEs) and strategic local government programmes. “Collaboration with credit guarantee institutions is one of the steps to support the acceleration of regional development while encouraging inclusive economic growth,” he said. He added that through this cooperation, the local government hopes programmes requiring financing support can be implemented optimally with better risk mitigation. The parties have also deepened discussions on several guarantee products offered by Jamkrindo, such as bid bonds, advance payment guarantees, performance bonds and maintenance guarantees. “Going forward, regional apparatuses carrying out construction work or procurement can utilise these guarantee services as an alternative to support the implementation of activities,” he remarked. According to Arbert, Jamkrindo has played a role in supporting various government projects through the issuance of guarantee products. Therefore, the Palangka Raya City Government sees the need to strengthen the relationship through a clearer legal framework. Meanwhile, PT Jamkrindo Palangka Raya Branch Head Sokhib explained that his party has long cooperated with several regional apparatuses within the Palangka Raya City Government. Through the planned signing of a memorandum of understanding (MoU), the existing cooperation is expected to have a stronger legal basis. “Jamkrindo is present as a guarantee company providing bid bonds, performance bonds, advance payment bonds, and maintenance bonds for service providers working on government projects,” he said. He added that over the past year, Jamkrindo has provided guarantee services for a number of projects within the Palangka Raya City Government, including at the Public Works and Public Housing, Settlement and Land Affairs Agency, and the Education Agency. “To date, these guarantee services have been running well without any default claims from service providers,” he said. Through this cooperation exploration, it is hoped that the implementation of local government projects will be safer, more orderly, and provide protection for all parties involved in development activities.