Guarantee

A written guarantee issued by Danamon on behalf of Applicant to the Beneficiary. If Applicant fails to complete their contractual duties, the beneficiary can make a claim on the guarantee that has been issued by Danamon on behalf of the Applicant.

Bank Guarantee (BG) refers to Peraturan Otoritas Jasa Keuangan (POJK);

Standby Letter of Credit (SBLC) refers to International Standby Practices (ISP) or Uniform Customs and Practice for Documentary Credits (UCP);

Demand Guarantee (DG) refers to Uniform Rules for Demand Guarantees (URDG).

The following is a classification for the types of Bank Guarantees that can be issued:

1. Project - where there are tendering, construction and maintenance activities. The relevant BGs are the Bid (Tender) Guarantee, Performance Guarantee and Maintenance/Retention Guarantee.
2. Non-Project - BG that are relevant are Advance Payment Guarantee, Payment Guarantee, Financial Guarantee, Custom Guarantee and Shipping Guarantee.

Required Document:

1. BG/SBLC/DG Issuance Form.
2. Sales/Work Contracts or other documents underlying the transaction.

Benefits for you:

• Increase the Beneficiary's trust to work with you as an Applicant.
• Obtain guarantee from Danamon as a condition for participating in a project tender (Bid Guarantee).
• Obtain guarantee from  Danamon for your performance (Performance Guarantee)
• Obtain guarantee from Danamon for payment from the Beneficiary (Maintenance Guarantee).
• Obtain guarantee from Danamon for transactions with advance payments (Advance Payment Guarantee).
• Obtain guarantee from Danamon for transaction with delivery of goods in advance (Payment Guarantee).
• Obtain guarantee from Danamon for taking goods through customs inspection (Custom Guarantee).
• Obtain guarantee from Danamon for the release of goods at the port without original transportation documents that have not yet presented (Shipping Guarantee).
  
• Obtain guarantee from Danamon for financial facility/ loan (Financial Guarantee).
• Obtain an unconditional guarantee from Danamon on performance of Applicant (specifically SBLC/DG).