PRODUCTS AND SERVICES

Bank Guarantee

It is a written commitment provided by the bank to the guarantee recipient, assuring that the bank will pay a certain amount to them at a specified time if the guaranteed party fails to fulfill its obligations

Types of Bank Guarantees

TYPES OF BANK GUARANTEES INTENDED USE
Bid Bonds Guaranteeing tender participants
Performance Bonds Guaranteeing the quality of work under a contract
Payment Bonds Guaranteeing a payment
Advance Payment Bonds Guaranteeing advance payments
Maintenance Bonds Guaranteeing project maintenance
Bank Guarantees addressed to the Directorate General of Customs and Excise Guaranteeing payment of import duties, administrative fines, and taxes

Features and Types of Contracts

  • The facility provided can be revolving or non-revolving
  • Payment methods can be installment or non-installment (non-installment)
  • The contract used is kafalah bil ujroh. Kafalah is a guarantee contract given by the guarantor (kafil) to a third party to fulfill the obligations of the second party or the guaranteed (makfuul 'anhu, ashil).

General Requirements

  • The bank acts as a guarantor for the customer's fulfillment of obligations to third parties
  • Guarantee objects:
    • Are the obligations of the customer requesting the guarantee
    • The value, amount, and specifications are clear, including the guarantee period; and
    • Do not contradict Sharia principles.

Customer Requirements

The following are the requirements that must be met by (prospective) customers or authorized parties representing customers in the form of Business Entities:

  • Legal capacity
  • Meet one of the following criteria:
    • Indonesian citizen (WNI) at least 21 years old or married (for individual customers)
    • Comply with the Articles of Association and applicable legal provisions (for Business Entity customers)
  • Have the ability and willingness to repay the provided financing
  • Not in a state of bankruptcy
  • Not included in the blacklist and bad credit list of the Regulator
  • Complete document requirements according to the type of Bank Guarantee requested

Document Requirements

No Type of Individual Documents Type of Business Entity Documents
1 Copy of identity card (e-KTP) Copy of identity card (e-KTP) of the authorized party to transact financing
2 Copy of Family Card (KK) Copy of Articles of Association/Deed of Establishment and its amendments legalized by the Minister of Law and Human Rights of the Republic of Indonesia
3 Original domicile certificate from the local sub-district (for out-of-town identity cards) Original domicile certificate from the local sub-district (for out-of-town identity cards)
4 Original Statement of Different Name/Signature (if there is a difference in name/signature) Original Statement of Different Name/Signature (if there is a difference in name/signature)
5 Copy of Taxpayer Identification Number (NPWP) Copy of Taxpayer Identification Number (NPWP) of the Company and Executives
6 Copy of Trade Business License (SIUP)/other business permits (If the financing facility is used to finance business entities) Copy of Trade Business License (SIUP)/other business permits
7 Environmental Impact Analysis (AMDAL)/Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL) (for manufacturing and plantation industry customers) Environmental Impact Analysis (AMDAL)/Environmental Management Efforts and Environmental Monitoring Efforts (UKL-UPL) (for manufacturing and plantation industry customers)
8 Copy of Company Registration Certificate (TDP) (If the financing facility is used to finance business entities with a limit > IDR 500 million) Copy of Company Registration Certificate (TDP) (For financing facilities with a limit > IDR 500 million)
9 Copy of Separation of Assets Agreement (if separated) Copy of the Official Gazette of the Republic of Indonesia (BNRI)
10 Original Letter of Consent from Husband/Wife (if not separated and handing over collateral) Original Articles of Association Submission Letter (SPAD)
11 Copy of Marriage Certificate (if married) Statement that the submitted amendment deed to the Bank is the latest one
12 Copy of the last 3 months account mutation Copy of the last 3 months account mutation
13 Financial Statements (Balance Sheet and Income Statement) for the last 3 years and/or copy of business transaction evidence/notes Company Financial Statements (Balance Sheet and Income Statement) for the last 3 years and/or Copy of Business Transaction Evidence/Notes
14 Original Reference Letter (if needed) Original Reference Letter (if needed)
Note: Photocopies of documents must be matched with the originals

Costs

The bank may impose ujrah/fee agreed upon with the customer at the beginning.

Important to Know

  • Bank Guarantee standard formats are determined by the bank
  • For every issuance of a Bank Guarantee, the bank may request a solid/liquid guarantee
  • In case the customer fails to fulfill obligations to a third party, the bank fulfills the obligations to the third party by providing advance funds, which are then converted into financing or by executing the guarantee, and the customer incurs costs.
  • The bank does not accept claims for expired Bank Guarantees.

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