Export Working Capital Credit Guarantee

DESCRIPTION
The Export Working Capital Credit Guarantee (KMKE) is the financing facility provided by Indonesia Eximbank (as the Guarantor) for the Public Bank (as the Guaranteed) for the risk of non-fulfillment of the financial obligation of the Exporter that receives the KMKE from the Public Bank.
 

 

ADVANTAGE
1.    For the Exporter:
2.    Facilitating the Exporter to obtain access to the KMKE financing facility from the Public Bank.
3.    For the Public Bank:
4.    Reducing the credit risk of the KMKE facility provided for the Exporter.
 

 

GENERAL REQUIREMENTS TO BECOME A CUSTOMER
1.    Guaranteed Bank

  • The Public Bank with an Indonesian legal entity that is owned by the government, a national private entrepreneur or the combination of both.
  • Providing the KMKE facility for the Exporter.

 

 

2.    Exporter

  • The Exporter may be a Direct Exporter or an Indirect Exporter (supplier to the Exporter).
  • The Customer obtains the KMKE facility from the Guaranteed Bank.

 

 

 

TERMS & CONDITIONS
1.    Guaranteed Objects
The KMKE facility provided by the Guaranteed Bank for the Exporter that is its Customer, the KMKE facility provided is adjusted on the basis of the yearly working capital need based on the export projection for one year ahead.
2.    The Guaranteed risk is the postponed or problematic credit due to the failure in delivering the goods/provision of the services according to the required evidence, which is caused by the risk of shipment or the delivery of the goods, among others:The failure in the procurement of raw materials, where the Exporter fails to obtain the raw materials for the production    processes as planned or projected.

  • The failure of the production process, where the Debtor fails to perform the production as planned.
  • The failure in fulfilling the Export L/C requirements or other contracts in the framework of the export activities.

 

 

3.    The Non-Guaranteed Risk is the inability of the Exporter to fulfill his obligations to the Guaranteed for the KMKE financing after the enactment of the Guarantee Certificate, which is caused by:

  • The failure of the Exporter in delivering the goods/providing the services due to any fire, natural disasters, rioting, public disturbances, strikes, earthquakes, warfare, nuclear reaction, radioactivity, and others covered by the General Loss Insurance Policy.
  • The failure of the Exporter in delivering the goods/providing the services and the negligence of the Guaranteed Person/Body in fulfilling the prevailing provisions and/or regulations.

4.    The Financing Value, the Amount of the KMKE Financing is at the maximum 90% of the KMKE financing amount provided by the Guaranteed Bank for the Exporter or in the amount of the reserved debit in the name of the Debtor in the Guaranteed Bank (whichever is smaller).
5.    The Cost, for each issuance of the Export Working Capital Credit Guarantee will be imposed with the costs in accordance with the regulations of Indonesia Eximbank, consisting of:

  • The Guarantee Fee;
  • The Administrative Cost;
  • The Stamp Cost.

6.    The currency of the KMKE Financing is Rupiah or a Foreign Currency approved by Indonesia Eximbank.
7.    The Time Period of the Financing, the time period of the financing is 1 (one) year at the maximum, namely as of the issuance of the  Certificate until the due time of the credit facility (whichever is earlier).
8.    The Amount of the Compensation Value, the amount of the compensation value that will be payable by the Guarantor to the Guaranteed Bank is 90% of the total loss or at the maximum amount of the Guarantee Certificate value (whichever is smaller).
 

 

PROCEDURES OF APPLICATION
1.    The application for the KMKE Financing facility to Indonesia Eximbank is submitted by attaching the documents among other as follows:

  • The copy of the Financial Statement of the last 3 (three) years.
  • The copy of the company’s legality documents.

 

2.    The application for the KMKE Financing facility to Indonesia Eximbank may also be submitted by the Guaranteed Bank by attaching the documents among other as follows:

  • The Guaranteed Conviction Analysis.
  • The Export Projection of 1 (one) year ahead.