INDONESIA: INDIVIDUAL CONSULTANT FOR CREDIT RISK ADVISOR
INTRODUCTION TO GGGI
The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.
The Government of Indonesia (GoI) has committed to reducing GHG emissions through Nationally Determined Contributions (NDC) with an unconditional target by 29% independently and a conditional target by 41% by 2030, which will be achieved through energy, waste, industrial processes, and products use (IPPU), forestry, and agriculture. Currently, around 60% of Indonesiaโs NDC commitments come from the forestry and land use sector (AFOLU). However, financing in the sustainable landscape sector is still limited even though around 30% of climate change solutions could be addressed from the forest, peatlands, and agriculture sectors.
Scaling up green financing and enabling tools for sustainable landscape and renewable energy project investments are crucial to achieving the countryโs green objectives and targets. As a national environment financial institution, the Indonesia Environment Fund (IEF) has been established to support fundraising and fund disbursement, as well as a trustee for ten (10) line ministries, in particular the Ministry of Environment and Forestry (MoEF).
GGGI Investment Team focusing on leveraging sustainable landscape investment partnerships in Indonesia aims to enable, leverage, and invest in sustainable forestry natural capital contributing to Indonesiaโs FOLU Net Sink goals. With green investment project is undergoing co-design phase, GGGI will continue to support MoEF and IEF to accelerate green investment in national and sub-national level.
To enhance and expand the range of financing services for social forestry actors, specifically 2,049,000 or at least 1,049,000 members of Social Forestry Business Groups (KUPS) who have obtained approval for forest utilization to carry out forestry and non-forestry-related activities, IEF will receive additional allocations for long-term non-permanent investments. The Reforestation Fund (Dana Reboisasi) is intended to support forest and land restoration through rehabilitation and sustainable forest management efforts, with a focus on empowering forest-dependent communities in accordance with the mandate of Presidential Regulation 23/2021 on Forest Management Implementation. The fund will be managed through the provision of a Revolving Fund Facility, administered by the Public Service Agency (BLU) of BPDLH.
GGGI supports IEF to expand the distributional effects of the Revolving Fund Facility for forestry businesses from small to large scale. The increasing needs in achieving the target of synergistic social forestry aligns with the demands of IEF's role and emission reduction through forest and green energy as well as community economic enhancement. Additionally, the support of financial and human resources for the allocation of funds is urgently needed by IEF.
OBJECTIVES OF THE ASSIGNMENT
GGGI will mobilize one (1) individual consultant as a Credit Risk Specialist (CRS) on a deliverables contract basis. The following duties and responsibilities are subject to further elucidation through additional, specific service requests to be made by GGGI during the contract duration.
The individual consultant will provide technical assistance to IEF and the GGGI in assessing the creditworthiness of clients. He/S will advise to ensure the financial stability of local financial institutions such as cooperatives, credit unions, and other financial institutions, intermediary agencies as well as potential for targeted private companies to access for Revolving Fund Facility. In sum, the consultant will analyze financial data, evaluate risk, and support IEFโs informed credit decisions, all of which are crucial for minimizing potential losses and optimizing profitability.
The CRS will guide the CASS, DCAS and IACAS consultants.
Within the scope of the assignment, the Individual Consultant will provide consultancy services to strengthen IEF operations related to the ID24 project pipeline, as follows:
- Financial Analysis:
- Conduct comprehensive analysis of financial statements, credit reports, and other relevant data to assess the creditworthiness of individuals and businesses.
- Evaluate the financial health of borrowers by analyzing income, debt levels, liquidity, and other relevant financial indicators.
- Financial analysis will focus on potential borrowers from social forestry groups and forest dependent communities (including National Parks).
- Risk Assessment: Assess the risk associated with extending credit and make recommendations for credit approvals or rejections based on thorough risk analysis.
- Credit Reporting: Prepare detailed credit reports and summaries for both internal and external stakeholders to facilitate informed decision-making.
- Credit Exposure Management: Monitor and manage the credit exposure of existing borrowers by regularly reviewing financial statements and conducting periodic risk assessments.
- Industry Trends Monitoring: Stay updated on industry trends, economic indicators, and regulatory changes that may impact credit risk to ensure proactive risk management, sharing relevant information with IEF management
- Collaboration: Collaborate with other departments, such as sales and underwriting, to gather and analyze necessary information for comprehensive credit evaluations.
- Mentorship: Provide guidance and support to junior credit analysts in their analysis and decision-making processes to foster professional development within the team.
- Client Relationship Management: Develop and maintain relationships with clients, ensuring clear communication and understanding of credit terms and conditions to foster trust and long-term partnerships.
- Policy Development: Assist in the development and implementation of credit policies, procedures, and risk assessment models to continuously improve overall credit management effectiveness, including development and/or improvement of Sharia component under RFF (i.e. guidance, SOP, teaming arrangement, and split-sheets/templates).
- Additional Tasks: Undertake any other tasks deemed necessary to assist GGGI and its counterparts in achieving their objectives in credit assessment and management.
Respecting post-COVID-19 protocols, the events/meetings can be held online, offline, and/or hybrid. Offline meetings are only possible by following the permitted zoning and strict health protocols set by the central/provincial/district government, GGGI, or both.
Any communication by the Consultants to other external partners must be approved by GGGI and IEF. Reporting line of Consultant are: GGGI with Green Investment Officer and IEF with Director of Fund Disbursement.
DELIVERABLES AND PAYMENT SCHEDULE
The Individual Consultant must submit a countersigned Coversheet Form in which the Work Completion section was signed by the service requestor as the deliverable of each service.
Following are the deliverables of the Consultant, to be fixed upon signing of the contracts
Deliverables
Output report(s)
Payment Terms
Percentage of Maximum Amount
- FGD with IEF for onboarding consultant and work arrangement during consultancy period
One (1) Powerpoint Presentation (PPT) which cover: objectives, approach and methods, timeline, and outputs/documents to be produced during the assignment
10th June 2024
5%
- One (1) report on business strategic plan for revolving fund IEF for 2024-2025, which covers:
Industry trends analysis updates highlighting economic indicators and regulatory changes impacting credit risk.
30th June 2024
15%
Recommendations for enhancements to credit policies and procedures, as well as risk warning and monitoring and evaluation platform for targeted IEF intermediary agencies
Documentation of collaboration efforts with other departments for strategic alignment.
- One (1) report on Credit scoring and risk ratio for IEF, covers:
Credit scoring assessment based on thorough analysis of financial monitoring reflecting credit healthiness and creditworthiness.
20th July 2024
15%
Calculation and analysis of risk ratios for IEF's revolving fund beneficiaries.
Ad hoc analysis and reports on credit scoring and risk management strategies as requested.
- One (1) Training Workshop for IEF field officers to enhance their capacity on credit scoring assessment
One (1) PPT including creditworthiness tools and step-by-step assessment
20th August 2024
10%
- One (1) report of support on prospecting and credit analysis process to get new intermediary of IEF
Detailed credit reports for prospective intermediaries.
20th September 2024
15%
Analysis of financial statements and creditworthiness assessment for potential intermediaries, at a minimum 6 intermediary agencies
Recommendations for credit approval or rejection for each prospective intermediary, including piloting with producer cooperatives (koperasi produsen).
- One (1) Event or workshop for Revolving Fund Facilityโs intermediary agencies gathering
One (1) PPT including strategy of RFF intermediary agencies and secure commitment of IEF with intermediary agency
20th October 2024
10%
- One (1) report on Supporting IEF achievement for revolving fund distribution through 24,000 beneficiaries in 2024
Comprehensive creditworthiness assessment reports for potential beneficiaries.
20th November
20%
Financial health evaluation summaries for approved beneficiaries.
Credit approval recommendations for each beneficiary.
Regular monitoring reports on the credit exposure of beneficiaries.
- Final Presentation of consultancy
One (1) PPT cover lesson learned taken from achievement during consultancy period and recommendation for RFF improvement and 2025 RFF pipeline
20th December 2024
10%
The Consultant will design and lead events/meeting as needed either internal and external events, in particular for:
- Training Field Officers for direct distribution (i.e. exercise tools, assessing guarantee โ trees)
- Intermediary agencies gathering
Deliverable reports shall require approval from both IEF and GGGI representative before processing payment.
EXPERTISE INFORMATION
The successful applicant must demonstrate outstanding professional competence and hold exemplary and relevant credentials. The skills and experience required of the consultant should include inter alia:
- Master's degree in economic development, finance, or a related field. A PhD degree is preferred.
- Minimum of 10 years of experience as a Credit Analyst, preferably in a senior or leadership role.
- Solid understanding of financial principles, credit regulations, and risk assessment methodologies.
- Professional certification such as Certified Credit Analyst (CCA) or equivalent is a plus.
- Proven track record of successful credit analysis and risk assessment in a similar role.
- Knowledge of industry-specific credit evaluation criteria and standards.
- Familiarity with credit scoring models and credit evaluation software.
- Experience in working with commercial and consumer credit portfolios.
- Strong understanding of relevant laws and regulations, such as the Fair Credit Reporting Act and the Equal Credit Opportunity Act.
- Demonstrated ability to work effectively within a team and collaborate with cross-functional stakeholders.
- Good verbal and written communication skills in both English and Indonesian.
- Experience in arranging events.
- Experience in supporting multiple cultural teams, working well under pressure, and having a flexible approach.
- Ability to work independently and proactively with minimal supervision, while meeting tight deadlines.
- Experience in event organization, outreach, and communication.
- Strong interpersonal skills with the ability to work under pressure and establish and maintain effective work relationships with people of different backgrounds.
ADMINISTRATIVE INFORMATION
In order to be considered for the position, a candidate shall be an Indonesia Citizen and must meet the minimum qualification. Consideration and selection will be based on a panel evaluation of the evaluation criteria factor below. Please note that only shortlisted/finalist applicants will be interviewed or contacted. GGGI does not pay for any expenses associated with the interviews unless expenses are pre-authorized. Reference check will be conducted on those candidates selected for an interview. The applicant's references must be able to provide substantive information about his/her past performance and abilities.
Interviews and a writing exercise may be requested. Applicants are required to prepare a brief narrative demonstrating how prior experience and/or education and training address selection criteria factors listed below:
- Policy analysis
- Development planning process
- Geographic Information System
- Communication
- Experience
- Expertise
- Individual Competency
- Integrity
- Interpersonal Competency
- Introduction and Motivation
- Leadership
- People Management
- Professional Competency
- Teamwork
- Technical Knowledge
Selection criteria listed below (Maximum Points Available - 100):
- Professional Competency (10 points): Masterโs degree in a discipline related to economics, finance, international development, economic development, or related field. A PhD degree is preferred.
- Experience (40 points): Minimum of 10 years of experience as a Credit Analyst, preferably in a senior or leadership role. S/he has solid understanding of financial principles, credit regulations, and risk assessment methodologies. Professional certification such as Certified Credit Analyst (CCA) or equivalent is a plus. Proven track record of successful credit analysis and risk assessment in a similar role. S/he able to demonstrate knowledge of industry-specific credit evaluation criteria and standards. Familiar with credit scoring models and credit evaluation software. S/he has experience in working with commercial and consumer credit portfolios. S/he has strong understanding of relevant laws and regulations, such as the Fair Credit Reporting Act and the Equal Credit Opportunity Act
- Communication (20 points): Level IV (fluent) orang and writing ability in English and Level IV Bahasa Indonesia is required. Ability to write report in English and participate in professional meetings in English.
- Individual Competency (20 points): Ability to work independently and proactively with minimal supervision, while meeting tight deadlines; Demonstrated ability to work effectively within a team and collaborate with cross-functional stakeholders; Good verbal and written communication skills in both English and Indonesian. S/he has experience in supporting multiple cultural teams, works well under pressure and has a flexible approach, has experience in event organization, outreach, and communication, and has strong interpersonal skills with the ability to work under pressure and establish and maintain effective work relationships with people of different backgrounds.
At GGGIโs discretion, reference checks and interviews may be conducted as part of the evaluation process.
Applicants must also include in their application package as follows:
- A cover letter of no more than 3 pages that demonstrates how the candidateโs qualifications meet the work requirements;
- A curriculum vitae which, at a minimum, describes education, latest experience and career achievements;
- Names, current and accurate contract numbers (email and phone) of three professional references that have knowledge of the applicantโs abilities to perform the duties set forth in the solicitation.
All of the above information must be included in the application package in order for the package to considered complete.
This position is for Indonesian nationals only. All application submitted by GGGI website no later than 1 May 2024. Application submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment. Child protection โ GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGIโs Child Protection Policy is written in accordance with the Convention on the Rights of the Child.
- Final Presentation of consultancy
- One (1) report on Supporting IEF achievement for revolving fund distribution through 24,000 beneficiaries in 2024
- One (1) Event or workshop for Revolving Fund Facilityโs intermediary agencies gathering
- One (1) report of support on prospecting and credit analysis process to get new intermediary of IEF
- One (1) Training Workshop for IEF field officers to enhance their capacity on credit scoring assessment
- One (1) report on Credit scoring and risk ratio for IEF, covers:
- One (1) report on business strategic plan for revolving fund IEF for 2024-2025, which covers:
- FGD with IEF for onboarding consultant and work arrangement during consultancy period