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Suretyship Product

Is a form of agreement between Surety and Principal, where the first party (Surety) provides security for the interests of the second party (Principal) for the interests of third party (Obligee).
Type of Suretyship Products:
1. Suretyship
Written agreement between the insurance company (Surety) and Principal to guarantee the interests of the project owner (Obligee), that the employee (Principal) will fulfill its obligations in accordance with the principal agreement (contract) made between the Principal and Obligee.
Types of Suretyship Products:
a. Surety Bond
     Assurance between the insurance company (Surety) and Principal to guarantee the interests of the project owner (Obligee) to fulfill its obligations in accordance with the principal agreement
(contract). Types of Surety Bond are:
1.Bid Security (Bid Bond/BB)
Is a guarantee that is used to participate in the tender as one of the requirements of the bidding document containing the surety guarantee to provide compensation if the principal resigns.
2. Performance Bond (PB)
Is a guarantee of the Principal’s ability to execute/ complete the work in accordance
with the established employment contract.
3. Advance Payment Bond (APB)
Is a guarantee used at the time the Principal takes the Advance provided by the Obligee to start its work. Includes Surety’s guarantee to return the advance the Principal has received to perform the work if the Principal fails to perform the work and can not refund the deposit
4. Maintenance Bond (MB)
Is a guarantee from Surety on the maintenance of the work completed by the Principal until the deadline specified in the contract.
5. Guarantee Rebuttal Appeal (SB)
Is a guarantee letter that serves to ensure the seriousness of the provider in providing the
letter of appeal due to dissatisfaction with the answer of the rebuttal of the Working Group of ULP.
6. Payment Guarantee Remaining Budget/
SP2D/ Progress Payment Guarantee to Obligee/Beneficiary of Government Guarantee that spends the remaining budget based on government budget to be paid to Principal/Assured who have not completed all the work according to contract.
7. Work Progress Guarantee
It is a guarantee of Principal obligations for
unfinished work/achievement but payment
has been made by the Obligee/Beneficiary.
8. Customs Bond
Is a guarantee of State Levies in the form of Import Duty (BM). Supplemental Import Duty (BMT), Value Added Tax (VAT) and Value Added Tax (PPn-BM) as well as taxes levied by the State Treasurer on export/import business activities (Pph Article 22) To producers of
goods for re-export. Types of Customs Bond are:
a. Easiness of Import for Export Purpose (KITE)
b. Bonded Zone (KB)
c. Customs Clearance Company (PPJK)
d. Temporary Import (OB-23)
e. Vooruitslag
f. Letter of Tariff and Customs Value Determination (SPTNP)/Memorandum of Customs Notes (Notul)
g. Temporary Landfill (TPS)
h. Sustainable Transport
i. Logistic Service Company (PJT)
j.Other Customs Bond
9. Excise Bond
Guarantees of state levies imposed on customs producers and importers (BKCs) produced by Ethanol and Drink Ethyl Alcohol (MMEA) industries or tobacco products.
10. Payment Bond
This type of financial commitment requires the debtor to pay off his/her debt in accordance
with the terms and conditions applicable to the original debt agreement. Types of Payment Bond are:
a. Purchase of Goods and Services Payment Bond
b. Distributor Bond
c. Cargo Agency Guarantee
Is a guarantee given to the Expedition Company and Cargo Agency from the inability to pay freight charges to Airline or Shipping Company.