JAKARTA(SINDO) – The Indonesian Export Financing Institution (LPEI/Exim Bank) obtains the capital loan from the Industrial and Commercial Bank of China (ICBC) in the amount of US$ 250 million. The loan tenure of 5 years will be used to finance exporters as well as China foreign companies who will expand their business in Indonesia. ”This loan functions to supplement our capital in foreign exchange denomination, “explained Senior Managing Director LPEI Arifin Indra in Jakarta yesterday. Arifin stated that this financing loan constitutes the initiative of both institutes especially as the initiative of the Ministers of Trade of both countries.

The Minister of Trade of the Republic of Indonesia also urged that the Association of Textile Industries in Indonesia (API) and the Association of Shoe Industries in Indonesia (Aprisindo) will apply for financing from LPEI. The financing to be conducted, according to the Minister, will comprise the increase of trade, investment and finance, between the two countries in the form of the trade of mechanical and electronic products, infrastructure and energy generating projects, construction, development of the UMKM, to assist buyers from China intending to buy products from Indonesian exporters up to the phase of the supply of securities and insurance from LPEI.

According to Arifin, such financing shall only be channeled to the companies in Indonesia, commencing the first quarter of 2011. As for the stipulated interest rate shall be based on Jakarta Interbank Offered Rate (JIBOR) plus a certain margin. “However, the interest shall still be more competitive than the interest on market rate,” he explained. For the ceiling rate of the financing, it shall be adjusted to the need of the respective company.

“Besides that, this loan is also as a token of cooperation between Indonesia and China which has been going on for sixty years,” he stated. Arifin exposed that LPEI at present is actively financing companies, such as textile products, shoes, energy, tires and marble companies. However, up till now there has not been any request for financing of these respective companies. “We still are waiting for proposals from each association,” he said.

Up till the Third Quarter/2010 the financing of LPEI reached Rp 12,8 trillion. This figure shows an increase of 45% compared to what has been achieved in the same quarter of the past year to the amount of Rp 7,04 trillion. The composition of financing constitutes financing for the CPO sector up to 15%, rubber and rubber products 9%, textile and textile products 9%, coffee 7%, food products 4%, construction services 2%, cacao 1%, footwear and prawns respectively less than 1%. “At the end of this year we have targeted financing up to the amount of 15,5 trillion rupiahs,” Arifin stated.