Jakarta, 21 February 2011 – The Indonesian Export Financing Institution (Indonesia Eximbank) aimed at a net profit of Rp 401.7 billion. The planned profit of 2011 increased by 17.50 % compared to that of last year in the amount of Rp 341.86 billion.

“The net profit this year will grow in line with the increased financing,” said Indonesia Eximbank Executive Director, I Made Gde Erata, at the signing of the cooperation agreement with the Indonesian Banking Development Institution (LPPI) in Jakarta last weekend.

His institution plans that the financing this year will grow by at least 30% compared to 2010 to become some Rp 20.46 trillion. In addition to the distribution to the countries of regular export destination, Indonesia Eximbank is also planning to increase the number of the non-traditional markets, such as those in North Africa, the Middle East, Eastern Europe, and Central Europe.

The non-traditional markets maintain huge business potentials. The types of financing needed by such countries are among others construction services and palm oil commodity.

In order to support such an expansion, his institution needs some Rp 20.46 trillion for financing this year. Some 49% of the total financing or Rp 10.02 trillion will be fulfilled in the rupiah denomination and the remaining 51% or 10.43 trillion in US dollar currency.

The rupiah financing is obtained through the government capital and the bond issuance, whereas the funds in the US dollars will be obtained from the multilateral credits, the cooperation overseas, the commercial loans, and the global bond issuance.


Bond Issuance
Indonesia Eximbank, he said, is planning to issue the rupiah bonds in the amount of 2.5 to 3 trillion rupiah. The bonds will be issued around May 2011. Currently, his institution is awaiting the result of the Indonesian Eximbank financial statement audit for the period that ended in December 2010.

Some of the funds for the rupiah bond issuance will be used to pay up the bonds due in 2011. His institution should pay up the bonds that are due in 2011 in the amount of Rp 1.4 trillion. The bonds in the amount of Rp 150 billion will be due on 28 September 2011, and the bonds in the amount of Rp 1.25 trillion on 13 July 2011. The company also utilizes the internal funds to pay up such bonds.

In addition to the rupiah bonds, Indonesia Eximbank has also conducted the studies on the issuance of the global bonds in the amount of US$ 150 million. The company has appointed Fitch Rating and Standard & Poor’s for the rating of Indonesia Eximbank. It is estimated that the bonds will be issued in the second semester of 2011.

“The proceeds of the rupiah and global bonds will be used for the export and import financing this year. In addition, it will also be used to pay up (refinancing) the bonds that are due, ”he said.

As of the end of December 2010, the total assets of Indonesia Eximbank reached Rp 20.95 trillion. Such assets grew by 61.52% compared to those of 2009 in the amount of Rp 12.97 trillion. Last year, Indonesia Eximbank booked the net profit of Rp 341.86 billion. The acquired profit increased as in the amount of Rp 127.50 billion compared to that of 2009.

The financing outstanding of 2010 increased by 68.61% to become Rp 15.74 trillion compared to that of 2009 in the amount of Rp 9.28 trillion. Such financing consisted of the working capital credit in the amount of Rp 11.13 trillion or 70.75 % of the total financing, whereas 29.25% or Rp 4,60 trillion was for the investment credit.

“In terms of segmentation, Rp 15.10 trillion or 95.95% of the total financing was distributed to the corporation sector, whereas Rp 636.75 billion or 4.05% was for the SME (UKM) segment”, he explained.

Until 2010, the net ratio of the problematic credits (non performing loan/NPL) of Indonesia Eximbank decreased from 5.77% to 3.22%, whereas the capital adequacy ratio/CAR was at the level of 40.49%, declining by 43.40% from that of 2009.

Source: Investor Daily, dated 21 February 2011