Credit/Financing Guarantee

Objectives

Credit/Financing Guarantee is a facility provided to guarantee the payment of financial obligations of the Insured Party in the event that the Insured Party fails to fulfill the requirements of the Credit/Financing agreement, resulting in default to the Guarantee Recipient.

Secured Criteria

• Business entities including individuals, as well as newly established or start-up businesses engaged in direct exports, indirect exports, export-supporting activities, and/or other activities aimed at enhancing the competitiveness of Indonesian products and following international trade developments.
• Can be domiciled within or outside the territory of the Republic of Indonesia.

Criteria for Guarantee Recipients

Banks.

Types of Guarantee

• Standardized Credit/Financing Guarantee: The Credit/Financing Guarantee provided by the Guarantor reduces the risk weight of the guaranteed credit to 0%, does not count towards the Maximum Credit Limit (MCL)/Maximum Disbursement Limit (MDL), and is classified as performing.
• Customized Credit/ Financing Guarantee: A form of Credit/Financing Guarantee cooperation based on agreements between the parties, aimed at providing added value to the Debtor's risk profile in relation to the provision of Credit/Financing facilities by the Guarantee Recipient to the Debtor.

Credit/Financing Guarantee Objects

• Cash loan facilities:
  • Export Working Capital Credit/Financing
  • Export Investment Credit/Financing
• Non-cash loan facilities:
  • Bank Guarantees and Standby Letters of Credit
  • Letters of Credit (LC) and Domestic Documented Credit (SKBDN)

Guarantee Period

Maximum duration is the same as the term of the Credit/Financing facility provided by the Guarantee Recipient.

Currency

The Indonesian Rupiah (IDR) or foreign currencies (valas) approved by Indonesia Eximbank.

Fees/cost

Insurance.