OJK to Implement Minimum Guarantee Fee Regulation

Industry Support for New Policy

The Financial Services Authority (OJK) is moving forward with plans to establish a minimum floor for guarantee fees in Indonesia's guarantee industry, with strong support from PT Jamkrida Jakarta. The proposed regulation aims to create a more stable industry environment by preventing excessive competition that could undermine business sustainability.

Key Considerations for Implementation

The new policy will need to balance the need for industry stability with the requirement to maintain access to guarantee services for productive sectors, particularly UMKM (Micro, Small & Medium Enterprises). According to Agus Supriadi, CEO of Jamkrida Jakarta, the implementation must consider different market segments to avoid limiting access to financing for UMKM.

Challenges and Industry Dynamics

The guarantee industry currently faces challenges related to tariff competition that often prioritizes business volume over proper risk management. Agus Supriadi highlighted that the variation in portfolio characteristics, particularly in the UMKM segment, makes it difficult to apply a uniform tariff standard that accurately reflects risk levels. To address this, Jamkrida Jakarta has been focusing on comprehensive risk analysis and operational efficiency improvements.

Regulatory Approach and Industry Collaboration

Ogi Prastomiyono from OJK mentioned that the regulator will work closely with industry associations to establish the minimum guarantee fee floor. The regulation is expected to create a healthier business environment while maintaining competitiveness. The OJK is also considering the varying capacities of guarantee institutions across different regions, including provincial Jamkrida entities.