Buyer’s credit

DESCRIPTION
The Buyer’s Credit facility is a financing facility provided by Indonesia Eximbank directly for Indonesian importers of goods and/or services in the framework of increasing the sales of the relevant exporters.
ADVANTAGE
Helping provide the importers with the capital to buy goods and/or services from Indonesia, so that the exporters in Indonesia can realize the plan of their export sales without direct financing from the banks.
GENERAL REQUIREMENTS TO BECOME A CUSTOMER
1.    Customer/Importer
       An importer is a foreign government or a legal entity representing a foreign government that has the purchase order for 

       the goods and/or services of an Indonesian exporter.
2.    Exporter
       An exporter is an exporter who receives the purchase order for the goods and/or services from the customer/importer.


TERMS & CONDITIONS
1.    The goods and/or services that can be financed with the Buyer’s Credit facility are the goods and/or services that are        strategic for Indonesia’s exports, and the exports cannot be financed by utilizing the financing facility provided by the commercial banks.
2.    Types of Financing. Financing can be provided in the forms as follows:

  • Transactional Financing, which is the financing for the import of goods and/or services that is short-term in nature, such as commodities and regular procurement of services.
  • Project Financing, which is the financing for the import of goods and/or services that is like a project, such as the procurement of investment goods for development of the production capacity, project consultancy services, project work or construction, etc.

3.    Financing Value, which is the amount of the financing, including:

  • Transactional financing in the maximum amount of 80% of the prices of the goods and/or services imported.
  • Project Financing in the maximum amount of 65% of the procurement value or the project value.

4.    Financing Currency is the Foreign Exchange approved by Indonesia Eximbank.
5.    Interest rate imposed on the Customer/Importer is the lending rate of Indonesia Eximbank.
6.    Paying off source is the allocated state budget for the import made.
7.    The time period of payment is:

  • For the Transactional Financing, in accordance with the time period as stated in the purchase and/or procurement, which is 1 (one) year at the maximum.
  • Foe the Project Financing, in accordance with the projected Cash Flow that is acceptable to Indonesia Eximbank, which is 5 (five) years at the maximum.

PROCEDURES OF APPLICATION FOR FACILITY
The application for the Buyer’s Credit facility may submitted by the Customer in his capacity as the Importer or by the Exporter to Indonesia Eximbank by attaching the documents among others as follows:
1.    Transactional Financing
The copy of the purchase or the procurement contract.

The profile of the Customer/Importer.
2.    Project Financing
3.    Investment Needs

  • The copy of the Feasibility Study and the investment/project goods procurement Contract attached with the schedule of payment for the procurement of the investment/project goods.
  • The Financial Analysis Projection or at least the Projected Cash Flow, which is used to evaluate the investment/project feasibility and the source of repayment.