Agustinus Handoko1*, Anggun Pesona Intan2, Pepey Riawati Kurnia3
1*,2,3 Sekolah Tinggi Manajemen PPM, Indonesia
*email: 1*[email protected],
2 [email protected], 3[email protected]
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Keywords |
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ABSTRACT |
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Surety Bond, Jamkrindo,
consumer behavior, marketing strategy, Jamkrindo Online
Suretyship, procurement. |
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The Indonesian
government, under the leadership of President Joko Widodo for two terms, gave
significant emphasis on infrastructure development, as reflected in the
annual infrastructure capital expenditure. Infrastructure development aims to
promote balanced development and open up new economic areas. In addition to
infrastructure projects, the government also allocates a portion of the
capital expenditure to strategic projects. The procurement process for goods
and services, both for infrastructure development and capital expenditure,
requires Surety Bonds issued by guarantee companies or Bank Guarantees issued
by banks. PT
Jamkrindo is one of the providers of Surety Bond
products, however, its marketing strategy is not aligned with the marketing
objectives of increasing the volume of guarantees and profitability.
Therefore, a new marketing strategy for Surety Bond products is needed,
utilizing the Mullins 4C model approach: context, customer, company, and
competitor. These four aspects are analyzed using macro analysis, industry
analysis, consumer decision-making process (CDMP), brand image, points of
parity, and points of difference. Through this analysis, a new marketing
strategy for Surety Bond products is formulated. |
INTRODUCTION
Infrastructure development has
continued to be carried out massively in the last decade, especially during the two periods of President Joko Widodo's administration
which continued to build infrastructure in Indonesia. Infrastructure
development is also one of the government's focuses to increase accessibility
of people and goods, as well as opening new economic centers. The spirit of equitable development across various regions in
Indonesia, which supports efforts to move out of the trap of a middle-income
country into a developed country, has encouraged an increase in infrastructure
spending (sda.pu.go.id, 2019).
Data from PUPR
Infrastructure Statistics Information for 2021 shows that the trend of
infrastructure spending continues to increase. In 2016, the Ministry of Public
Works and Public Housing (PUPR) had a budget of IDR 98.19 trillion, then in
2020 it became IDR 120.2 trillion. The largest budget allocation in the PUPR
Ministry is for capital expenditure around 69% and goods expenditure around 29%
Figure 1. PUPR Ministry Budget (PUPR
Infrastructure Statistics Information 2021)
Presidential Regulation
Number 16 of 2018 concerning Government Procurement of Goods/Services states
that guarantees in the process of procuring goods or services can take the form
of a bank guarantee or Surety
Bond. (bpk.go.id, 2018). In the auction process,
construction, evaluation and maintenance of projects, as well as at the stages
of procurement of goods and services, project owners, namely ministries/state
institutions or regional work units (SKPD) need assurance that the auctioned
project will be carried out according to the project owner's plans. This
planning includes project specifications, timely work, and work within budget.
This certainty is needed because ministries/state institutions and SKPD use
state money, the realization of which must be accounted for. Apart from that,
the suitability and realization of the use of state money will be audited by
the Financial Audit Agency (BPK) or the Financial and Development Supervisory
Agency (BPKP). To ensure that projects planned by ministries/state agencies or
SKPD can be implemented according to specifications and quality, project owners
request project guarantees (Surety Bond) for
all contractors who will participate in the tender.
After the tender winner is
determined, the project owner also needs to be assured that the down payment
requested by the contractor will be used to work on the project according to
the agreed percentage, so the project owner requires a down payment guarantee.
Likewise, when work on the project begins, the contractor must submit an
implementation guarantee and when the project is completed, the contractor must
submit a maintenance guarantee to provide assurance that the quality of the
project meets specifications and damage will be borne by the contractor within
a certain period.
In addition to project
guarantees, the PUPR Ministry also provides guarantee requirements for the
procurement of goods and services to all tender participants to ensure that the
winning tender participants will carry out work according to the work order.
Apart from ensuring that the tender winner will carry out the work and the
procurement committee does not need to repeat the tender process if the tender
winner defaults, the PUPR Ministry also needs to be assured that the goods and
services provided by the tender winner comply with specifications.
Seeing this opportunity, PT
Guarantee Credit Indonesia (Jamkrindo), whose
minority shares are owned by state-owned enterprises (BUMN) and is now a
subsidiary of the insurance and guarantee holding company Indonesia Financial
Group (IFG), provides S urety B ond products. Moreover, the Draft State Revenue and Expenditure Budget
(RAPBN), including the 2023 RAPBN, always allocates capital expenditure for
infrastructure, especially the development of infrastructure to support
economic transformation, including inter-regional connectivity, transportation,
food and energy (anggaran.kemenkeu.go. id). Referring
to PT Jamkrindo's Management Report Book, Jamkrindo's Surety Bond product is in the same business line (LoB)
as counter bank guarantee, where the composition of net income is IDR 124.39
billion or 3.38 percent in January-August 2022 of the total return net income. Guarantee
services (IJP) for all Jamkrindo products amounting
to IDR 3.65 trillion. The largest income from guarantee services still comes
from KUR guarantees, namely IDR 2.56 trillion or 70% of the total net
guarantees (PT Jamkrindo Management Report Book,
2022).
�
Figure 2. Composition of PT Jamkrindo's guarantee volume 2017-2022 (in billions of
rupiah)
The Jamkrindo
Business Ecosystem Study classifies the guarantee volume or nominal rupiah
guaranteed by Jamkrindo into the KUR, non-KUR,
non-KUR without PEN, and KMK PEN groups. In the period 2017-July 2022, the
composition of KUR guarantee volumes is always much higher than the guarantee
volumes of other groups. In July 2022, the KUR guarantee volume reached IDR
2,406 trillion from the total guarantee volume in July 2022 of IDR 3,647
trillion (Indonesian Credit Guarantee, 2022).
Jamkrindo's product composition, based
on the volume of non-KUR product guarantees, in the first semester of 2020 was
dominated by housing financing liquidity facility (FLPP) guarantees of 26.74%
and multipurpose credit guarantees of 22.09%. The composition of the guarantee
volume for Surety Bond products is 8.2% and counter bank guarantee is 6.65%.
According to PT Jamkrindo's 2021 Annual Report, the business process for Surety Bond products and contra bank guarantees is business to customer (B2C), while KUR guarantees and KMK guarantees
within the framework of PEN are business
to business (B2B). The B2C business process positions Jamkrindo
as a guarantee company to deal directly with customers. Due to its personal
nature, B2C business processes must go through case by case (CBC) analysis. The B2B business process places Jamkrindo in business relationships with financial
institutions that distribute credit (both program and non-program) to its
customers. Due to its communal nature, the B2B business process begins with a
cooperation agreement (PKS) between Jamkrindo and
financial institutions (banks and non-banks) then followed by conditional automatic coverage (CAC)
analysis.
Surety Bond products
are included in quadrant I of the GE matrix. However, Jamkrindo's
marketing strategy for guarantee products, including Surety Bonds, is prepared based on the 4P approach only. The 4P marketing
mix is more suitable for products in the form of goods, while products in the
form of services must combine 4P with the other 3, namely physical evidence, people and process . The 4P marketing mix
that Jamkrindo has prepared also needs to be
updated because it treats guarantee products as
goods, not services.
Even though the B2C
business process places Jamkrindo in direct contact
with customers, the company's existing marketing strategy has not yet touched
on the main problem the company is facing, namely marketing products with a
customer orientation. The company's marketing strategy, in terms of product
elements, has not been able to answer consumer needs, while in terms of price
it has not reflected the attributes commensurate with the product. Apart from
that, product distribution channels have not been able to reach all of the
company's target segments. Likewise, the promotional elements have not been
designed in an integrated manner between conventional and digital promotions.
So far, marketing
activities have relied on activities including product outreach to contractor
associations, product outreach via websites and social media, as well as
several sports activities involving business partners. These marketing
activities can still be formulated in a more targeted manner to increase
competitiveness because Jamkrindo's brand image based on Jamkrindo's
Brand Awareness Formative Analysis is relatively superior compared to Surety Bond issuers in the IFG holding environment, namely PT Jasindo and PT Askrindo (Roystone, 2019). Jamkrindo's
position as a guarantee product issuer is also very strong and differentiates
it from other companies (point of
difference / PoD) because it is a company that
has a legal basis in the form of law, namely Law Number 1 of 2016 concerning
Guarantees, while all players in the guarantee industry, both have almost the
same attributes and benefits (point of
parity /PoP).
Based on this, PT Jamkrindo's
marketing strategy for Surety Bond products needs to be updated so that
management makes strategic decisions regarding the marketing mix based on four
marketing elements, namely product,
price, place and promotion (4P), and because it is related to products
in the form of services, there are three elements again, namely physical evidence, people and process (7P). Without a marketing
strategy, Jamkrindo also cannot allocate resources
appropriately.
METHODS
Marketing
strategy formulation for Surety Bond Products is carried out through applied
research. This research was conducted to answer the problem formulation faced
by PT Jamkrindo, namely what is the existing marketing strategy for PT Jamkrindo's Surety Bond products,
what is the marketing strategy for PT Jamkrindo's Surety
Bond products in 2024-2026, what is PT Jamkrindo's brand
image according to consumer perception, and what are the points? of
parity ( PoP ) and point of difference ( PoD) of PT Jamkrindo Surety Bond products.
The
research design in this thesis is based on a case study where data collection
uses company document study techniques and supporting external documents,
interviews with stakeholders, and through a survey based on a prepared questionnaire.
Primary data was obtained through interviews or surveys with Surety Bond
service users. Secondary data was obtained from internal company documents and
external company documents.
RESULTS
A.
Context
Analysis
��������������� Indonesia's economic growth has
tended to be consistent in the last few decades, reflecting continuously
increasing economic activity, including in the micro, small and medium
enterprise sectors. The government also consistently encourages economic
activity through infrastructure development and procurement of goods and
services that support economic activity.
��������������� Consistent government policies
on infrastructure development and capital expenditure to drive the economy have
opened up wide opportunities for the guarantee business through suretyship products.
PT Jamkrindo, as one of the credit guarantee and
other guarantee companies in Indonesia, operates in an industrial and market
environment with a very broad ecosystem.
1.
Macro Analysis (PESTEL)
The
government continues to continue the KUR program and regional autonomy policies
which were the legacy of the previous regime. The KUR program is an economic
stimulus program in the form of credit interest subsidies to banking debtors
from MSME circles, which is part of the poverty alleviation program (setkab.go.id,
2018).
Even though it is run
by banks, this KUR program can run through the support of PT Jamkrindo which was assigned by the government to guarantee
KUR together with PT Askrindo. Political factors are
very dominant in influencing PT Jamkrindo's business
continuity from the KUR guarantee product line. Apart from the KUR program, the
government also launched a housing financing liquidity facility (FLPP) program
where Jamkrindo was also assigned by the government
to provide guarantees. Data from the PT Jamkrindo
Company Long Term Plan 2019-2024 shows that government policy on the KUR
program will encourage growth in KUR distribution to IDR 325 trillion in 2024
(PT Jamkrindo, 2019).
In
infrastructure development, Jamkrindo also had a
positive effect because the government stated its commitment to continuing
infrastructure development. In fact, in the 2020 APBN Note, during the
transition period towards Advanced Indonesia 2045, the government prepared a
scenario to continue to encourage infrastructure development in 2031-2035.
Apart from basic infrastructure development, the government is also paying
serious attention to infrastructure development to open new economic access
such as toll roads and ports. By 2025, it is estimated that toll road construction
over 10 years will cover 6,115 kilometers in various regions in Indonesia. For Jamkrindo, the government's consistency and commitment in
infrastructure development provides positive opportunities for construction
guarantee products (Ministry of Finance, 2020).
Jamkrindo also experienced a positive effect
from the growth of Indonesian exports and imports, especially in its portfolio
of letter of credit guarantee products and suretyship products in the form of
custom bonds. Even though during the Covid-19 pandemic, Indonesia's exports and
imports fell as the volume of global exports and imports decreased, the
government is confident that after the Covid-19 pandemic, world economic
activity will recover so that demand for goods and services through exports and
imports will also recover. (ekon.go.id, 2021).
In
the economic sector, PT Jamkrindo is in contact with
several things, namely trends in Indonesian economic growth, the influence of
macroeconomic indicators, sectoral economic growth, flagship programs of the
Ministry of State-Owned Enterprises (BUMN), infrastructure development, export
and import growth, developments in credit interest rates, credit banking
problems, the development of the creative economy sector, the continued growth
of FLPP, credit distribution policies, demand for new motor vehicle credit, and
the warehouse receipt system.
On
the other hand, Jamkrindo has threats and negative
impacts from banking credit distribution policies. During the Covid-19
pandemic, regulators and banks relaxed credit distribution policies to maintain
credit volume growth. However, the increase in credit volume was accompanied by
an increase in the credit risk profile, which is a strong indicator of the risk
of credit payment failure. For credit guarantee companies, this increase in
credit risk must be watched out for and is a negative sentiment.
Economic
activity in Indonesia is also influenced by several social aspects, including
entrepreneurial trends, the Covid-19 pandemic, and the demographic bonus and
middle class phenomenon. According to the 2018 Global Entrepreneurship Index,
Indonesia is still lagging behind in the Asia and ASEAN regions. 2018 data
shows that Indonesia is ranked 94th in entrepreneurship, far below Vietnam at
87th, Thailand at 71st, Malaysia at 58th and Singapore at 27th. However,
Indonesia's entrepreneurial ratio continues to increase, namely only 1.67% in
2014, then increasing to 3.47% of the population and to 3.64% in 2021. The
government is committed to encouraging growth in the number of entrepreneurs in
Indonesia through the National Entrepreneurship Movement (GKN). For the
guarantee industry, the growth of the entrepreneurial sector has had a positive
influence.
In
the last decade, technological developments have been very rapid and have had
an impact on the national economy. The growth in the number of internet users
in Indonesia has increased and has reached 171.17 million people or the
equivalent of 64.8% of the total population of Indonesia in 2018 and rose to
175.4% of the population in 2019 or an increase of 17% from the previous year.
The growth in the number of internet users opens up opportunities for insurance
companies to reach more business partners and customers, as well as streamline
internal business processes.
From
a macroeconomic perspective, the issuance of Law Number 1 of 2016 concerning
Guarantees has had a significant impact on the guarantee industry. Bank
Indonesia also issued Regulation Number 17/12/PBI/2015 concerning Providing
Credit or Financing by Commercial Banks and Technical Assistance in the context
of MSME Development. This provision regulates the credit portion of banks and
financial institutions of at least 20% to the MSME sector of the total credit
disbursed. In this way, the guarantee portfolio for MSMEs is guaranteed so that
the continuity of the guarantee business can be maintained.
2.
Industry Analysis
( Porter's
Five Forces )
Buyers
have far more choices so it can be concluded that buyers in the guarantee
industry have high bargaining power. Guarantee companies are not hampered by
the costs of switching to reinsurance companies to carry out re-insurance so
that the bargaining power of suppliers in the insurance industry is in the low
category. In the guarantee industry, the threat of substitute products is in
the medium category because there is the potential for substitute products for
those owned by guarantee companies and insurance companies, as well as those
owned by financial institutions. The threat of new entrants in the guarantee
industry is classified as moderate because new entrants actually have ample
opportunities to enter this industry. However, on the other hand, the old
players in this industry are more experienced and have been known to customers
for longer. The number of guarantee companies with national coverage and
guarantee companies operating at the provincial level is not very large, only
22 companies. However, guarantee companies also have to compete with credit
insurance companies and general insurance companies that have suretyship
products. Thus, because of the high intensity of competition, competition
between players in this industry is in the high category.
B.
Customer
Analysis
The customer analysis in this research is based on the
results of a survey of Surety Bond product users in various regions in
Indonesia related to the customer decision making process (CDMP) and combined
with customer perceptions of PT Jamkrindo's brand image. The survey was conducted to
customers via a questionnaire where some statements used a Likert scale of 1-5,
while several other statements were multiple choice with a maximum of three
choices.
C.
Company
Analysis
Based
on analysis of the consumer decision making process (CDMP), analysis of Jamkrindo's STP and marketing mix, as well as analysis of
competitors' STP and marketing mix, Jamkrindo's
Surety Bond customer segmentation is grouped based on geographic, demographic,
psychographic and purchasing behavior variables. Based on customer segments, Jamkrindo's target market can be adjusted to support the
company's marketing objectives, namely increasing Jamkrindo's
Surety Bond volume as determined by the company. Management has set a Surety
Bond volume target in 2023 of IDR 16.438 trillion, growing 13.8% from the 2022
target of IDR 11.9 trillion. Meanwhile, the revenue target from Surety Bonds is
IDR 125.37 billion, growing 12.75% from the 2022 target of IDR 98 billion.
By
referring to the brand image, basic
product benefits, and differentiating factors, Jamkrindo's
future positioning is as a provider of Surety Bonds for the procurement of
government/BUMN/private goods and/or services whose products can be obtained
anywhere, both at Jamkrindo work unit offices and
through services. Digitally via Jamkrindo Online
Suretyship (JOS), and serves the claim process in a maximum of 12 working days
after the files are complete.
�
D. Competitor Analysis
Competitors in the suretyship product market are guarantee
companies and insurance companies that have permission to market suretyship
products from the Financial Services Authority as the regulator. The number of
general insurance companies and guarantee companies that have permission to
market suretyship products as stated in the Financial Services Authority
announcement Number Peng-2/NB.211/2021 concerning the List of General Insurance
Companies, Guarantee Companies and Consortiums that have permission to market
Suretyship Products as of 30 September 2021 is 36 general insurance companies
and 22 guarantee companies. One of Jamkrindo's
competitors in the suretyship market is PT Asuransi Jasaraharja Putera, a subsidiary
of Jasa Raharja which is
both a member of the Indonesia Financial Group (IFG) holding company. Jasaraharja Putera's marketing
mix was chosen because the data is relatively complete and can be accessed by
the general public.
E.
Brand
Image Decision Analysis s
��������������� PT Jamkrindo's
brand image according to consumer perception, whether referring to the survey
in this research's CDMP or the results of previous PT Jamkrindo
surveys, is relatively good, reflected in the high level of satisfaction,
confidence that the claim process is in accordance with the agreement, and the
high percentage of respondents who use the application suretyship Jamkrindo expressed its satisfaction. Apart from that, as a
guarantor institution, PT Jamkrindo also has a role
as a buffer for the risks borne by
the recipient of the guarantee when the guaranteed person defaults on the
credit agreement or experiences payment failure. Through guarantees, the level
of non-performing loans (NPL) of collateral recipients can be reduced so that
the collateral recipient's business is not disrupted.
CONCLUSION
Surety Bond Jamkrindo
implements a marketing strategy based on Mullins model analysis (4C), which
includes Context, Customer, Company and Competitor aspects. In the Context
aspect, they evaluated macro and industry conditions using PESTEL and Porter's
Five Forces Model, finding that buyers have high bargaining power, suppliers
have low bargaining power, and high competition. In the Customer aspect, they
understand consumer behavior in the purchasing decision process, emphasizing
the importance of conveying information, speed of claims, and company
reputation. In the Company aspect, they have a positive brand image with high
favorability and uniqueness attributes. In the Competitor aspect, they differ
from competitors by emphasizing the benefits of Surety Bond products in risk
mitigation. Jamkrindo's Surety Bond products meet
customer satisfaction and have advantages compared to its competitors,
especially in terms of speed of service and benefits provided.
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