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Jakarta, December 16, 2022 — The Indonesian Export Financing Institution (LPEI) appreciates the Indonesian Government and the People's Representative Council (DPR) for approving the Law on the Development and Strengthening of the Financial Sector (UU PPSK) on December 15, 2022.
As a Special Mission Vehicle (SMV) under the Ministry of Finance of the Republic of Indonesia, LPEI has been given a special mandate based on Law No. 2/2009 by the Indonesian Government to drive export growth through financing, guarantees, insurance, and consultancy services.
Riyani Tirtoso, Executive Director of LPEI, expressed, "We highly appreciate the Government's and DPR RI's support in entrusting LPEI, as stated in Articles 277 - 278 of the UU PPSK, allowing LPEI to participate in the national and international payment system and to receive Export Proceeds (DHE) from LPEI debtors' export transactions and be integrated into the national financial system. This trust reflects the Government's commitment to supporting LPEI in fulfilling its role in building and strengthening the export ecosystem and boosting national exports."
Previously, only onshore foreign exchange banks could receive DHE. "With this decision, LPEI now has the opportunity to directly access and monitor the export performance of debtors/exporters, including optimizing financing for debtors/exporters," added Riyani.
Riyani further explained, "With this newly passed decision, the business interaction process between LPEI and debtors/exporters becomes simpler because information acquisition no longer has to go through domestic foreign exchange banks but can be handled directly by LPEI. Additionally, the assistance and facilities needed by debtors can be directly coordinated with LPEI. Exporters/debtors of LPEI also benefit from the mandate of managing DHE accounts under the UU PPSK, as it makes banking transaction costs more efficient."
It is worth noting that LPEI has significantly increased the number of new exporters since 2019 until October 2022, growing by 426%, from 38 exporters to 200 exporters.
With the support of market data managed by the Indonesian Eximbank Institute (IEB Institute), LPEI continues to focus on expanding non-traditional export markets, increasing the capacity of export-oriented businesses/SMEs, and developing the potential of Indonesia's flagship commodities to reach a broader international market.
Currently, LPEI is strengthening the export ecosystem, emphasizing the principles of sustainable business. Collaboration with the government, institutions, companies, cooperatives, farmer groups, and community organizations has led to the development of 140 Forex Villages. In the future, LPEI will become more aggressive in collaborating with the entire export ecosystem to establish more Forex Villages that can enhance the welfare of the community. Additionally, LPEI will further diversify managed commodities, with ten product clusters already formed, including coffee, salt, brown sugar, cocoa, textiles, seaweed, rice, handicrafts, vaname shrimp, and black pepper.
Media Contact:
Chesna F. Anwar Corporate Secretary – Indonesian Eimbank
Phone: (021) 39503600
Email: corpsec@indonesiaeximbank.go.id
Web: indonesiaeximbank.go.id
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