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Jaminan Uang Muka / Down Payment Bond

Surety and Principal's promise to return down payment that has been received by the Principal (in the form of work progress) in accordance with the provisions in the work contract.

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The Down Payment Bond function is a condition if a Principal takes an advance payment for the purpose of smoothing the financing of the project he is working on and as a guarantee if the Principal fails to carry out the work so that he cannot return the down payment he has received (in the form of work progress).

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In relation to the principal's failure to return the down payment it has received, the obligee can submit a claim to Surety with a value equal to the losses suffered by the obligee, a maximum of the value of the Bond.

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The supporting document for applying for a Down Payment Bond is a Work Contract that has been signed by the Principal and the Obligee. The standard guarantee value is 20% - 40% of the contract value. The supporting documents must regulate the Down Payment Bond, Bond Value, Bond period and work period.

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In the event that the collateral value stipulated in the contract agreement is greater than that stated above, in principle it is still possible to apply for an Advance Payment Bond in the form of a Surety Bond, but it must go through a more prudent analysis process.

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FAQ

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How much is the down payment bond issuance?

"The down payment bond issuance costs is calculated from the amount of the bond value and the bond period, the rate ranges from 0.35% - 0.50% per 3 months"

 

Is there collateral?

"For a surety bond down payment (issued by Insurance), collateral is not normally subject to any collateral."

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How long will the publishing process take?

"The bond issuance time is approximately 3 working days from the documents we received are complete, for existing customers the issuance is less than that"

 

Is it possible to issue a deposit guarantee through a bank, and if through a bank / bank guarantee there is collateral?

"Of course you can use a Bank / Bank Guarantee, and for the amount of collateral is much smaller than directly issuing to the bank, the range of collateral is 10% - 25% of the value of the Guarantee"

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