Indonesian Credit Guarantees - National Development

In order to synchronize a number of laws and regulations in this field the Government has issued Government Regulation No. 41 of 2008. This Regulation specifically identifies Law No. 19 of 2003 on State Owned Enterprises, Government Regulation No.45 of 2005, and Government Regulation No.95 of 2000. The framework of the Regulation is to implement National Development Policy with a view to facilitating activities and growth in the micro, small, and medium enterprise level and at the cooperative level as well.

Essentially, the Regulation changes the name of the previous entity responsible in this area from the General Business Development Infrastructure Company to the General Indonesian Credit Guarantee Company (JAMKRINDO). The previous company was based on Government Regulation No. 51 of 1981 as variously amended by Government Regulation No. 27 of 1985 and Government Regulation No. 95 of 2000.

JAMKRINDO has been established with the primary focus of guaranteeing credit to the enterprises and cooperatives noted earlier. This can be done through joint ventures, the establishment of subsidiaries, capital injections, co-guarantees, and others.

The Regulation has extensive and explicit provisions for the appointment and dismissal of Members of the boards of directors and supervisors.

Under the provisions of the Regulation an internal supervisory unit is to be established. The Regulation also sets out the needs for an Audit Committee and any other committees.

The use of profits and reserves is also explicitly regulated.

The Regulation repeals and replaces Government Regulation No. 95 of 2000. The Regulation has been in force since 19 May 2008.