Risk Management in Collateral Credit: A Case Study in PT. Jamkrida (Perseroda) Sulawesi

Abstract

This paper presents an exploratory study regarding risk management in collateral credit organizations, particularly in PT. Penjaminan Kredit Daerah (Jamkrida) (Perseroda) Sulawesi Selatan. The term collateral credit is unfamiliar to some people, even though the role of collateral credit is essential for MSMEs before applying for credit loans in a specific bank. In addition, the organization’s role in supporting MSMEs is in line with their vision, contributing to regional economic development. This paper aims to determine the business process of collateral credit organization; to identify its risk management application; to determine the internal and external analysis of the business in order to achieve public awareness regarding collateral credit. The research methodology used in this paper is a qualitative approach using by exploratory case study method. The data was collected from the interview with board of commissioners and collateral credit manager. Furthermore, the analysis of TOWS strategy resulted in an in-depth analysis of PT. Jamkrida’s business’s development purpose.

Keywords: Collateral Credit; MSMEs; Regional Economic Development; Risk Management.