Reconstrucuting Gearing Ratio and Digital Base Service Rates to Mitigate Financial Risk for the Indonesian Credit Guarantee Industry’s Sustainability

Abstract

This research examines the role of the credit guarantee industry in supporting the growth of
MSMEs in Indonesia through guarantee programs that aim to reduce information asymmetry
between banks and MSMEs. Using structured interview methods and data triangulation
techniques from various sources, this study analyzes the management of gearing ratios and
tariff risks that significantly impact the financial stability of guarantee institutions. The
analysis results with NVIVO 12 reveal digital transformation’s importance in efficiency and
transparency in risk management. This research also produces a digitalization design for the
Program Gearing Ratio (PGR) and offers practical solutions through SWOT analysis to
improve the guarantee capacity and sustainability of the industry. The findings contribute to
the literature by proposing an integrated internal audit approach for financial risk mitigation
in the credit guarantee industry.