JAKARTA: PT Asuransi Ekspor Indonesia, an insurance company, targets premium revenue from surety bond to be IDR46 billion this year.
The business line of surety bond contributed IDR12 billion in the first quarter of 2011 or 73% higher than the revenue in the same period of last year, as affirmed by ASEI Head of Suretyship Division M. Syamsudin Cholid.The growth of surety bond business is driven up by implementation of Presidential Decree No.54/2010 on the Government Procurement of Goods and Services. The decree has given an authority to insurance companies to run a surety bond business, he said, last week.For marketing the surety bond, the company engages with PT Bank Tabungan Negara Tbk, PT Bank Jabar Banten Tbk, Bank Jateng, and Bank Jatim. Meanwhile, it is reviewing cooperation with two state-owned banks.In the meantime, the underwriting proceeds from surety bond business reached IDR3.24 billion in the first quarter of this year. Then, it also booked IDR24.07 billion premium income in 2010 or lower than target at IDR42.5 billion.However, the premium revenue rose 9.35% from IDR22.01 billion last year.The premium revenue missed the target because the policy on suretyship was commenced in the mid of 2010. So, most project owners are late to get the information and tend to look for a guarantee bank, as confirmed by Syamsudin. (T01/MSW/NOM)
