Jakarta – The Indonesian Export Financing Institution (LPEI), or commonly referred to as Indonesia Eximbank, projected that the export credit outstanding amount will reach Rp 15 trillion towards the end of this 2010.
"Well, we will reach some Rp 15 trillion as we have reached Rp 13 trillion in October," said Indonesia Eximbank President Director I Made Gde Erata to detikFinance at the Trade Ministry venue in Jakarta on Tuesday (30/11/2010).

Up to September 2010, Erata stated, the total export credit channeled through Indonesia Eximbank reached Rp 13 trillion or a growth of 45 percent compared to the same period of last year. “This sharp increase was due to the increase in the export oriented demand of export finance resources. It was also due to the improved demand of goods and services originated from Indonesia, parallel with the revival of the global economy,” Erata explained.

Erata added that if compared with October last year’s figures, the credit growth up till now has reached the range of 66%. Whereas, compared to the end of 2009, the increase ranged about 80%.

“This fund we will use for assisting those (export agents), particularly the UMKM who so far has difficulty to reach the “bankable” criteria, “ Erata stated.

Erata explained, up till October 2010, the greater part of export credit had been extended to the industrial sector (54%), the mining sector (12,5%), the agricultural sector (10,5%) and the transportation sector (10,5%). Whereas the remaining was allocated to the trade sector, the electricity sector, town gas and water supply, construction, business services, community social services, etc.

“So far our financing resources we obtained originating from the government, foreign Ex-im banks, The World Bank, etc.,” Erata said.

As we know, the Indonesia Eximbank can also be called the Indonesia Export Financing Institution (LPEI).  This financing institution has the aim to support the government policy to enhance the national export program by means of the financing of the national export. The institution originally operating as of 1 September 2009 has the function to provide assistance in the framework of export, to assist in the financing of transactions, or projects not financed by banks because not being prospective (non-bankable but feasible), and to assist in overcoming constraints faced by banks or financing institutions in providing funding for potential exporters. Also to provide loans and insurance.

Source: Detikfinance.com