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Surabaya, November 22, 2023 - The Indonesian Export Financing Agency (LPEI)/Indonesia Eximbank, as the Special Mission Vehicle of the Indonesian Ministry of Finance, continuously collaborates with all parties to boost national exports, especially in cooperation with the East Java Provincial Government. This commitment is manifested through collaboration with Bank Pembangunan Jawa Timur Tbk (Bank Jatim) by signing a Cooperation Agreement (PKS) for the development of national exports, held at the Graha Samura Bumimoro Building in Surabaya, East Java, coinciding with the Empowering East Java Export Event on November 22, 2023.
The agreement involves cooperation in co-financing programs, export credit guarantees, and a joint commitment to export community development. The signing of this cooperation agreement was directly witnessed by the Governor of East Java, Khofifah Indar Parawangsa.
In her address, Khofifah expressed appreciation for LPEI and Bank Jatim for their continuous efforts in boosting exports from East Java. This agreement further strengthens the collaboration established between the East Java Provincial Government and LPEI, especially regarding the development of national exports through the Desa Devisa (Export Village) program.
Khofifah highly praised LPEI for contributing to export assistance that boosts the confidence of Desa Devisa participants, making their products more accepted globally. 'The collaboration between the East Java Provincial Government and LPEI has given birth to 149 Desa Devisa, making East Java the largest producer of Desa Devisa in Indonesia. We have also received many testimonials from SME participants in the Desa Devisa program, concluding that exporting is easy. It's our exceptional spirit, diligence, and perseverance that have led us to receive positive testimonials from SME players,' said Khofifah.
Khofifah also shared about the Desa Devisa LPEI not only boosting exports but also striving to preserve the culture and local wisdom of East Java. One of these is the Desa Devisa Batik Gedog in Tuban, known as the oldest batik in Indonesia found before the Majapahit era. Brown cotton, one of the materials used to make Gedog batik, is a rare plant worldwide and is harvested every three months. 'Gedog batik makers also possess extraordinary imagination, reflected in their batik paintings. This becomes a tourist attraction and serves as a unifying element for our nation through local wisdom,' she said.
Khofifah also shared her experience visiting the export release of Sidoarjo's seaweed Desa Devisa. During that time, Khofifah also met with a potential buyer from Australia interested in opening a factory in Sidoarjo. The investor had conducted a ground-breaking event last August.
'Ultimately, the Sidoarjo Desa Devisa not only found a suitable buyer for seaweed exports but also managed to invite an Australian investor to conduct a ground-breaking event for a seaweed processing factory. This signifies LPEI's role in supporting downstream exports through the Desa Devisa program is on the right track,' said Khofifah.
The Executive Director of Business Development at LPEI, Maqin U. Norhadi, explained that East Java Province makes an extraordinary contribution to the national GDP, with a contribution of more than Rp2.300 trillion coming from East Java. The realized contribution of East Java's exports each year exceeds Rp300 trillion.
To drive greater export value from East Java, LPEI, together with Bank Jatim, will conduct joint financing and ensure the distribution of credits provided by Bank Jatim through sovereign guarantees. LPEI also provides products and solutions to Bank Jatim to reduce the risk of default by foreign buyers and community-based exporter upscaling programs through cooperation with Desa Devisa.
'LPEI, as a state instrument, is ready to provide support to Bank Jatim to enhance its export support capacity for entrepreneurs. With LPEI's Sovereign status, it will provide excellent protection to Bank Jatim in managing its export credit risks. This collaboration will drive Bank Jatim, as a regional bank, to enhance its capacity in distributing export credits to exporters with guarantees from the Indonesian Export Financing Agency,' said Maqin.
The President Director of Bank Jatim, Busrul Iman, expressed Bank Jatim's commitment to developing its duties and responsibilities to participate in the development of the East Java region, including the development of SME and micro-business exports in East Java Province. He emphasized the synergy and collaboration with LPEI in supporting these efforts. 'Bank Jatim provides support from upstream to downstream, and of course, in carrying out all of this, we synergize and collaborate with various related parties,' he said.
On that occasion, LPEI also received an award from the East Java Provincial Government as a Supporting Institution for Export-Oriented SMEs. This award was presented directly by the Governor of East Java, Khofifah Indar Parawansa, to the Executive Director of Institutional Relations at LPEI, Chesna F. Anwar.
Media Contact
Chesna F. Anwar Corporate Secretary – Indonesian Eximbank
Ph.: (021)39503600
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