The Coal and Retail Sectors Dominate Recipients of Corporate Working Capital Credit Guarantees

The realization of the government guarantee program (Jaminah) for working capital loans to corporations reached Rp 2 trillion by August 2021. The largest recipients were from the coal and retail sectors, each accounting for 19.5%.

This was followed by the textile sector, with a proportion of 19.2%. The next largest recipient sector of working capital loan guarantees was paper, at 13%.

Next, recipients from the livestock feed and plantation sectors each accounted for 10% and 8.4%, respectively. Recipients of working capital loan guarantees from the automotive sector amounted to 3%.

Two percent of working capital loan guarantee recipients came from the construction sector. Recipients from the leather and footwear sectors, and fisheries, each accounted for 1.3% and 1.2%, respectively. Meanwhile, recipients from the outsourcing services sector amounted to 1.1%.

For information, the working capital loan guarantee is a guarantee program through the Indonesian Eximbank (LPEI) for financing channeled by banks to labor-intensive corporations affected by Covid-19. The program aims to protect, maintain, and improve the economic capabilities of businesses amidst the Covid-19 pandemic.