Project Guarantee

Objectives

Project Guarantee is provided to ensure the ability of the Obligor to fulfill obligations according to the underlying agreement between the Obligor and the Guarantee Recipient/Obligee/Bouwheer.

Types of Project Guarantees

• Bid Guarantee/ Bid Bank Guarantee/ Tender Guarantee/ Tender Bond/ Bid Bond/ Bid Security/ Bank Bid Bond;
• Advance Payment Guarantee/Advance Payment Bank Guarantee/Guarantee for Advance Payment/Bank Guarantee for Advance Payment;
• Performance Guarantee/ Performance Bank Guarantee/ Guarantee for Performance/Bank Guarantee for Performance;
• Payment Guarantee/ Payment Bank Guarantee/ Guarantee for Payment/ Bank Guarantee for Payment;
• Maintenance Guarantee/ Retention Guarantee/ Maintenance Bank Guarantee/ Warranty Guarantee.

Insured Criteria

• Business entities including individuals, domiciled inside or outside the territory of the Republic of Indonesia, including State Owned Enterprises (BUMN), Regionally Owned Enterprises (BUMD), State Owned Legal Entities (BHMN), Privately Owned Enterprises (BUMS), Joint Venture Companies, Joint Operations or other civil agreements;
• The guarantee can apply for guaranty objects that are inside or outside the territory of the Republic of Indonesia;
• Currently not in a legal case that has a significant impact on the business activities of the Guaranteed and/or bankruptcy claims and/or debt repayment review;
• Currently not in a legal case that has a significant impact for business activities of the Guaranteed and/or bankruptcy claims;
• Guaranteed to be in performing loan status at SLIK OJK in the last 2 (two) years. Specifically Guaranteed with the Counter Guarantee scheme, in the status of a performing loan at SLIK OJK in the last 1 (one) year;
• Guaranteed Business has been running for 2 (two) years, except for Guaranteed with Counter Bank Guarantee scheme;
• Have a good job execution performance.

Guarantee Recipient Criteria

Corresponds to the duration stated in the Guarantee Certificate or similar documents based on the agreement/contract/work order submitted by the Guarantee Recipient to the Guarantor.

Guarantee Period

In accordance with the duration stated in the Guarantee Certificate or similar documents.

Currency

Indonesian Rupiah (IDR) or foreign currency.

Fees and Costs

• Issuance
• Amendment
• Administration

Type

1. Guarantee covered by a 100% Collateral Deposit:
2. Guarantee covered by Counter-Guarantee:
   1. Counter-Guarantee from a Bank Financial Institution (LKB) and Financial Institution/Export Credit Agency for the Guarantee issued by LPEI.
   2. Counter-Guarantee issued by an Insurance Company/ Guarantee Company for the issuance of Guarantee by LPEI.
3. Guarantee with Facility Scheme (Covered by Collateral and/or Reinsurance)