Beijing - Indonesia Exim Bank signed an MoU with the Industrial and Commercial Bank of China (ICBC). Bank Exim obtained the loan in the amount of US$ 250 million as an addition to the loan of last year in the amount of US$ 100 million.

The MoU was signed in the presence of Vice President Boediono and Chinese Vice President Xi Jinping at the Grand Hall of the People in Beijing, China on Wednesday (20/10/2010) at 19:30 in the evening local time.

Present were Trade Minister Mari Elka Pangestu, Foreign Affairs Minister Marty Natalegawa, State Minister for State Enterprises (BUMN) Musthafa Abubakar, and Minister for Industry MS Hidayat.

It was mentioned that the Director of Exim Bank, I Made Gede Erata, was one of the parties signing the agreement. This cooperation comprises the scope of trade promotion, investment and finance. In the form of, among others, trade of mechanical and electronic products, technology products, energy products and raw material.

“Secondly, the infrastructure and energy projects allocated in both countries or those established by Indonesian or Chinese companies”, he said.

Thirdly, construction projects handled by companies in both countries and development of UMKM. Fourthly, i.e. providing loans from ICBC to Indonesia Exim Bank for those relevant projects of both institutions.

“Providing of loans from ICBC to Indonesia Exim Bank to support buyers from People’s Republic of China intending to buy products from Indonesian exporters or project cooperation between Indonesian - PRC companies,” Erata stated.

As compensation, Erata said, Exim Bank will issue insurance securities for projects located in Indonesia and China.”In this cooperation scheme, a funding of US$ 250 million shall be allocated or equivalent China yen/remibi to support the bilateral cooperation projects,” Erata concluded.