Product & Services

Bank Guaranree is a provision of a written promise from Guarantor (Bank) to the Beneficiary Assurance (obligee) for a certain period of time and specific purpose, stated that the Bank will pay Secured liabilities (principal) if the relevant breach the contract

A. Benefit

1. Easy and Quick

Quick and easy process of Bank guarantee administration is one of supporting factors for your smooth business.

2. Reliable and Trusted

We, as the first joint venture Bank in Indonesia have achieved public trust, resulting on acceptable, trusted and reliable of our Bank guarantee.

Risk

1.     Market Risk

Risk occurred due to market interest and foreign exchange fluctuation.

2.     Operational Risk

Dysfunction of internal risk, human error, system failure or external problem.

3.      Credit Risk

Risk occurred due to the inability of third parties to settle their obligations.

B. Procedure and Using Guidance

Request

Proposing issuing request of Bank guarantee along with:

· Decision Letter of Minister of Justice and goods import tax.
· Contract between applicant and guarantee recipient.
· Collateral if required.


C. Bank Guarantee Type

Custom Bond

Bank guarantee that is issued in order to postpone the import tax charged to the applicant.

Bid Bond

Bank guarantee that is issued for the purpose of participating in auction or project offer.

Performance Bond

Bank guarantee that is issued for the purpose of project that conducted by the applicant.

Advance Payment Bond

Bank guarantee that is issued for the purpose to guarantee the advance payment that have been received by the applicant for project that is being done.

Maintenance/Warranty Bond

Bank guarantee that is issued for applicant's interest due to project that has been finished.

Retention Bond

Bank guarantee that is issued for the purpose to guarantee some money for about 10%-30% from the project value.

D. Charge

Service Charge
Bank Guarantee 2% x period (months)/12 months (min eqv. USD 15)