Bank guarantee is payment guarantee that is given to Bank guarantee beneficiary (personal or company), if guaranteed parties cannot meet their obligations or guaranteed parties break their promises.
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.
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. Risks
1. Operational Risk
The dysfunction of internal process, human error, system failure or external problem.
2. Credit Risk
Risk occurred due to the inability of third parties to settle their obligations.
E. Charge
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Service
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Charge
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Bank Guarantee
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2% x period (months)/12 months (min eqv USD 15)
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