PT Asuransi Kredit Indonesia (Askrindo) has announced that it will achieve a total value of 810.3 trillion rupiah in Credit Insurance (KUR) by March 2026. This achievement reflects the company's commitment to supporting financial inclusion and enhancing the small and medium enterprise sector in Indonesia, with more than 36.8 million borrowers benefiting from the program.
During a press conference held in Semarang, R. Mahlan Prabantaryekso, the Compliance and Risk Management Director at Askrindo, confirmed that the company's active participation in the Credit Insurance program reflects its ongoing commitment to enhancing economic growth in the country. He noted that loan insurance constitutes 70% of the company's portfolio, indicating the significance of this sector in its overall strategy.
Event Details
Despite the challenges facing the industry, Askrindo has demonstrated remarkable adaptability, as the performance of loan insurance continues to show notable resilience. Mahlan pointed out that the claims ratio in the industry remains high, but this reflects the strategic role that insurance companies play in absorbing financial risks, especially in the small and medium enterprise sector.
In response to these conditions, Askrindo is enhancing its risk management capabilities comprehensively, from risk assessment processes to claims management, to ensure the maintenance of a healthy and sustainable portfolio quality. Mahlan emphasized that these steps will help the company maintain stable performance while seizing opportunities for more precise growth.
Background & Context
Founded in 1971, Askrindo is one of the leading insurance companies in Indonesia. The company plays a pivotal role in supporting small and medium enterprises, which are the backbone of the Indonesian economy. Since the launch of the Credit Insurance program in 2007, it has been designed to provide financing for small and medium enterprises, contributing to economic growth and job creation.
This program is part of the Indonesian government's strategy to enhance financial inclusion, aiming to provide funding for projects that may face difficulties in obtaining loans from traditional banks. This initiative has improved the economic conditions for many families and small businesses across the country.
Impact & Consequences
Data shows that Askrindo expects the outlook for the loan insurance industry to remain positive, with forecasts of bank loan growth in the range of 8% to 12% by 2026. However, Mahlan stressed the importance of focusing on quality growth rather than merely increasing volume, as quality in growth is a critical element in achieving sustainability.
Askrindo anticipates an increased need for risk mitigation mechanisms across various sectors, reflecting the importance of insurance in supporting economic stability. The expected rise in demand for insurance will also contribute to growth in this sector.
Regional Significance
In light of global economic challenges, Askrindo's experience could serve as a model for the Arab region, where many countries suffer from weak financial inclusion. The lessons learned from the Credit Insurance program can assist in developing similar strategies to support small and medium enterprises in Arab countries.
Enhancing financial inclusion through loan insurance programs can contribute to improving economic conditions and bolstering financial market stability in the region.