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Jakarta, September 6, 2024 – Indonesia Eximbank, also known as the Indonesian Export Financing Agency (LPEI), continues to demonstrate its commitment to supporting the increase of Indonesian product and commodity exports to non-traditional markets, particularly in the African continent. In 2023, Indonesia’s export value to Africa reached USD 6.88 billion. LPEI plays an active role in supporting 84 Indonesian exporters to penetrate markets in 49 African countries.
According to data from the Indonesian Central Bureau of Statistics (BPS), processed by Indonesia Eximbank, Indonesian exports to Africa have experienced stable growth, with a compound annual growth rate (CAGR) of approximately 9.47% over the past five years. The top five destinations for Indonesian exports in Africa include Egypt (37%), Cameroon (7.3%), Djibouti (7%), South Africa (6.1%), and Nigeria (5.5%). The five largest Indonesian export commodities to Africa include animal and vegetable oils, paper and paper products, soap and cleaning agents, automotive and automotive components, and electrical equipment.
T. Wahyu Prihadi Wibowo, Acting Managing Director of the LPEI Secretariat, Compliance, and Human Resources, explained that Indonesia Eximbank is committed to continually supporting exporters in accessing the African market through the provision of Export Financing and Trade Credit Insurance (TCI).
"Indonesia Eximbank not only enhances the competitiveness of Indonesian products in the growing African market but also provides exporters with protection from various risks related to international trade," said Wahyu.
As part of the efforts to increase exports to non-traditional countries, particularly the African region, the government, through LPEI, offers a Regional Special Export Assignment (PKE) facility. This facility aims to provide financing for transactions or projects that are commercially challenging but considered strategic by the government in supporting national export policies. The PKE Regional program includes export financing for exporters focusing on countries in Africa, South Asia, and the Middle East, excluding countries under special attention.
Some of the projects facilitated by LPEI through the PKE Regional program in Africa include financing the export of CN-235 aircraft to Senegal, financing the construction of 3,950 Social Housing units in Algeria by PT Wijaya Karya, exporting cement and clinker to East Africa, and exporting canned fish (sardines, mackerel, and tuna) to Nigeria and Ghana in West Africa.
"LPEI's studies show that commodities such as palm oil, automotive products, automotive components, and plywood still have significant potential in the African market. Africa presents a large market with promising economic growth for Indonesian exporters. With LPEI's support, businesses can be more confident in penetrating the African market. Now is the time for Indonesian exporters to seize this opportunity to expand their reach and strengthen their position in the global market," Wahyu concluded.
Media Liason
T. Wahyu Prihadi Wibowo
Corporate Secretary – Lembaga Pembiayaan Ekspor Indonesia
Ph. : (021) 39503600
Email : corpsec@indonesiaeximbank.go.id
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