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Surakarta, 25 September 2023 - The city of Surakarta and the surrounding area is one of the economic epicenters for the Central Java region and the Special Region of Yogyakarta (DIY) which is rich in export potential, including SMEs who have the potential to become exporters.
The top three leading export commodities in Surakarta include furniture, wood and wood products, and textiles and textile products. To drive greater exports, the government has introduced the Special Export Assignment (PKE) program which can be utilized by export-oriented business actors. The government, through the Indonesian Ministry of Finance, launched the PKE program based on Minister of Finance Regulation (PMK) No. 134/PMK.08/2015 which was then updated with the latest PMK through PMK No. 183/PMK.08/2021.
This PKE program is a mandate carried out by the Indonesian Export Financing Institution (LPEI) or Indonesia Eximbank to provide financing, guarantee and insurance facilities for transactions or projects that may be difficult to implement commercially, but are considered important by the government to support national export policies or programs.
Until now, the PKE program has become a solution for many export-oriented business actors, including export-oriented SMEs. One concrete manifestation of the government's support for export-oriented SMEs is through the PKE UKM program and the PKE Trade Finance program which has been distributed by LPEI and is being utilized quite massively by business actors nationally.
Surakarta can be an example of how export-oriented SMEs take advantage of the PKE program. Currently, various export-oriented SMEs in Surakarta and surrounding areas have taken advantage of the PKE UKM and PKE Trade Finance programs with a total financing limit reaching IDR 495 billion as of August 2023.
LPEI's Managing Director for Business Development, Maqin U. Norhadi, explained that LPEI is one of the Special Mission Vehicles (SMV) of the Ministry of Finance of the Republic of Indonesia, which has the mandate to distribute facilities which are not only in the form of financing but also include export insurance facilities such as trade credit insurance and marine cargo. insurance as well as credit and project guarantee facilities, which is one of the efforts for LPEI to also be present as a credit enhancer for business actors including export-oriented SMEs.
With full support from the government and LPEI through the existing PKE program, export-oriented SMEs in Central Java and DIY have a golden opportunity by utilizing the PKE program to maximize their export potential. The PKE program also aims to encourage sustainable economic growth and have a positive impact on all export-oriented businesses in this region.
"Through PKE, LPEI helps business actors overcome the obstacles they face, including difficulties in export financing, export guarantees and insurance. "With enthusiasm and hard work, Indonesia's export potential will continue to shine in the global market," explained Maqin on the sidelines of the PKE Business Gathering and Socialization event in Surakarta which was held as a form of collaboration between the Indonesian Ministry of Finance, the Indonesian Ministry of Trade and the Indonesian Ministry of Industry together. LPEI last week.
Maqin added that up to now in 2023 there are 5 (five) PKE programs in total that can be utilized whose assignment periods are still valid, namely the UKM PKE Program, PKE Trade Finance, PKE for Africa, South Asia and the Middle East, PKE for the Transportation Equipment Industry and PKE Pharmaceutical and Medical Device Industry.
PKE support ultimately contributed to Indonesian products being able to penetrate the international market, such as support for the construction of lodgemonts (flats) by Indonesian contractors in Algeria, export of passenger train carriages to Bangladesh, military aircraft to Nepal and Senegal as well as financial support for SMEs. export.
One of the SME entrepreneurs who has benefited from the PKE program is Muhammad Andri Setyawan, owner of CV Pria Tampan. In front of the export-oriented business participants, Andri shared his successful experience in exporting batik, even in the midst of the challenging conditions of the Covid-19 pandemic on the global stage.
PKE financing support for SMEs such as CV Pria Tampan has helped Mas Andri to keep his business running during the pandemic. "In fact, we can increase production capacity in line with the recovery of export demand and the world economy. "We can continue to produce and meet buyers' demands without having to worry about a lack of working capital," said Andri.
The Business Gathering and PKE Socialization activities in Surakarta were also attended by the Assistant for Economy and Development of the Regional Secretary of Surakarta City Gatot Susanto, Director of State Financial Risk Management, DJPPR Ministry of Finance of the Republic of Indonesia Heri Setiawan, Head of the Surakarta Financial Services Authority Eko Yuniarto, Acting Head of Bank Indonesia Surakarta Bimala .
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