Realizing Sustainable Growth, LPEI Strengthens Governance and Risk Mitigation in State Capital Participation

The government assigns a Special Export Task (PKE) to the Indonesia Eximbank (LPEI) to provide financing, guarantees, and/or insurance for export activities that are commercially difficult to carry out but are deemed necessary to support national export policies.

As a form of government support for LPEI to carry out PKE, the government and the Indonesian House of Representatives (DPR RI) have agreed to provide State Capital Participation (PMN) amounting to Rp 5 trillion. PMN is used to strengthen the competitiveness of Indonesian products and services, encourage an increase in state foreign exchange, and foster the creation of new exporters and job opportunities.

The DPR RI has asked LPEI to improve performance in the quality of LPEI financing, as indicated by strengthening governance, risk, and compliance, enhancing product competitiveness, resolving problematic assets to reduce potential state losses, and reinforcing the business model to improve financial performance.

As a follow-up to the PMN grant agreement to LPEI, a Focus Group Discussion (FGD) was held on July 19, 2024, to gather aspirations and input from stakeholders, particularly regarding the PKE plan to be financed from PMN. The FGD was attended by representatives from the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Ministry of Law and Human Rights, and the State Secretariat.

After receiving aspirations and input from various parties, the PMN grant process continued with the harmonization of the Draft Government Regulation on the Addition of PMN to LPEI Capital as the legal basis for granting PMN to LPEI.

LPEI is committed to continuously strengthening governance, risk, and compliance (GRC) to ensure more effective, efficient, sustainable, and transparent performance as a form of responsibility of this government-owned special financial institution to stakeholders.