IFG Hopes PMN Approved To Drive The People's Business Credit Program

Illustration (Photo: Doc. Antara)

JAKARTA - Insurance and Guarantee BUMN Holding, Indonesia Financial Group (IFG) hopes to get funds from the government in the form of State Equity Participation (PMN).

Previously, the Ministry of SOEs had proposed giving PMN to IFG worth IDR 6 trillion. But unfortunately, this PMN proposal has not been approved by the Ministry of Finance.

IFG Business Director Pantro Pander Silitonga said that this state capital investment would later be given to Jamkrindo and Askrindo. These two companies are said to have big tasks in the field of MSME People's Business Credit (KUR) guarantees.

Furthermore, said Pantro, the KUR program has been proven to help stimulate the economy and maintain MSME sustainability during the COVID-19 pandemic. In fact, Askrindo and Jamkrindo have so far guaranteed 70 percent of the KUR program.

"This KUR program is quite effective and we support the government according to the targets set. Therefore, we hope that there will be government support in the form of capital," said Pantro at the 'Ngopi Bareng BUMN' event, Thursday, September 29.

Patro assessed that strengthening capital was important. This is because the target for the distribution of KUR continues to increase. Based on the data presented, KUR distribution reached Rp138 trillion in 2019 and increased to Rp198 trillion in 2020.

During the 2020 to 2021 period, Pantro continued, the trend of KUR distribution has increased amid the economic downturn due to the COVID-19 pandemic. Where the realization of the distribution of KUR 2021 reached IDR 285 trillion.

"This means that there is a 44 percent increase. At the same time, in banking, credit increases are only five percent. So it means that banks are more careful and reasonable because of uncertain economic conditions," he said.

Thus, said Pantro, IFG has been present to provide guarantees to banks in distributing KUR so that MSMEs as the backbone of Indonesia's economy can continue to run.

Moreover, Pantro continued, 60 percent of Indonesia's economy is supported by the MSME sector. He said, this is the basis for the government to continue to increase the KUR target in the future.

"This year the KUR target in 2022 is IDR 373 trillion, which means it will increase by 31 percent, in 2023 the target is to increase it again to IDR 470 trillion and the next (2024) will reach IDR 585 trillion. This means that in the next two years there will be an increase in KUR distribution of more than 20 percent every year," he said.

According to Pantro, PMN will strengthen Askrindo and Jamkrindo's capital in providing guarantees to KUR. He said, the realization of Askrindo's KUR guarantees reached Rp75.2 trillion.

Furthermore, Pantro said, the funds were distributed to more than 1.58 million MSME debtors.

Meanwhile, Jamkrindo amounted to Rp. 101.1 trillion with MSMEs guaranteeing as many as 2.21 million MSME debtors until June 2022.

IFG, continued Pantro, as an insurance company, cannot borrow for this capital. Meanwhile, IFG's capacity as the holding company is also very limited. The reason is, IFG has increased capital by Rp. 6.7 trillion in June 2022 for the settlement of Jiwasraya policyholders.

"The ability to fundraising holding is limited, so we need PMN for KUR. Otherwise, our capacity will decrease. We cannot guarantee that the KUR program is according to the government's target," he explained.

Erick Thohir Asks for Additional PMN IDR 7.88 trillion

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir said that state capital participation (PMN) for state-owned companies in 2023 was only approved for IDR 41.31 trillion from the proposed IDR 67.82 trillion.

Therefore, Erick asked for an additional PMN of Rp7.88 trillion to Commission VI of the DPR. The addition was due to a budget gap of Rp20.81 trillion between PMN's proposal for 2023 and PMN's allocation in the 2023 Financial Note.

"We hope that commission VI will continue to encourage IDR 7.88 trillion. If we look at the dividends, the actual figure is approximately IDR 7 trillion, the increase," he said in a Working Meeting with Commission VI, Thursday, September 8.

Erick then explained the nominal and allocation of each BUMN. First, PT Hutama Karya needs an additional IDR 1.66 trillion for the assignment of the Trans-Sumatra toll road.

Then, IFG amounted to IDR 6 trillion for Jamkrindo, Askrindo and People's Business Credit (KUR) capital.

Then, the reinsurance to strengthen the company's business capacity was increased by IDR 3 trillion.

InJourney for the purposes of several Special Economic Zones (SEZs) was proposed an additional Rp1.4 trillion and KAI for the financing of the Jakarta-Bandung high-speed train of Rp1 trillion, and ID FOOD of Rp520 billion.

Erick said another reason for adding PMN 2023 had to be made was the deposits of state-owned companies in the form of increasing dividends.

"Our expert to the Ministry of Finance is that our dividends, we don't talk about tax and PNBP, which I have conveyed, are actually almost Rp1,198 trillion, the last three years. And especially for our dividends, there was an increase where initially from that time we proposed Rp36.4 trillion, but there was an increase so that the value rose. We worked together almost Rp40 trillion, Rp39.7 trillion," said Erick.