Indonesia Eximbank news and announcements.
The Indonesian Export Financing Institution (LPEI), also known as Indonesia Eximbank, was formed by the Indonesian government to support national export programs and to increase the competitiveness of Indonesian export products in the global market. The institution offers several facilities aimed at helping exporters conduct safe and profitable international trade transactions, including financing, guarantees, insurance, and advisory services.
Aside from the institution’s standard facilities, the institution also launched several new strategies in 2017. These strategies include strategic alliances, partnerships, and positioning, and are designed to increase the competitiveness of Indonesian exporters in the global market. The positioning strategies in particular were formed based on Indonesia’s position in the GVC (Global Value Chain), where the country’s position remains relatively low due to the following reasons:
Another effort by Indonesia Eximbank to increase national export in 2018 was signing a management contract with the Directorate General of State Assets Management (DJKN) at the DJKN headquarters in February 2018. The contract is an extension of the 2018 Annual Work and Budget Plan, which was previously ratified by the Minister of Finance. Through the partnership, Indonesia Eximbank hopes to open more opportunities for exports in non-traditional market countries, including Pakistan, Bangladesh, and countries in South America, the Middle East, and the African continent. With this expansion of export markets, the total of Indonesia’s export destination countries have reached an extraordinary number of 137 countries. This development is expected to bring positive effects on the Indonesian export scene.
The DJKN provided Indonesia Eximbank with pointers on maximizing the increase of exports, including evaluating difficulties that the institution has been facing and finding ways for the institution to overcome these obstacles. The DJKN also asked Indonesia Eximbank to prioritize distribution of fundings to Micro, Small, and Medium Enterprises (MSMEs), so that businesses in that sector could contribute more to the increase of exports. Through the education of new exporters, product diversification, and the expansion of export destination countries, Indonesia Eximbank aims to be increasingly able to maximize Indonesia’s export potential and to open opportunities to enter new export markets.