Reconstructing gearing ratios and digital-based service rates to mitigate financial risks for sustainable development in Indonesia’s credit guarantee industry

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 ratio and tariff risks that significantly impact the financial stability of guarantee industry. The analysis results with NVIVO 12 and the Analytical Hierarchy Process (AHP) 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.