The Indonesian Export Financing Agency (LPEI) is targeting to increase its financing by 60 to 70 percent in 2010 up from around the Rp 9.5 trillion (US$1 billion) it is expecting to disburse this year, and is projecting an average 28 percent annual growth from 2011 to 2014.
"We are going to reach to strong exporters who seek to penetrate new markets and to support those who want to diversify their products," Mahendra Siregar, CEO of the LPEI, also dubbed Indonesia Eximbank, said during a hearing with the House of Representatives' Commission XI overseeing financial affairs on Monday.
He elaborated that of around Rp 15 trillion to be disbursed next year, the lion's share of 76 percent is expected to go to corporate exporters, while 15.1 percent would go to small and medium enterprises (SMEs). The remaining 8.9 percent is going to be used for bank risk financing.
"We are expecting to disburse some Rp 30 trillion in export financing in 2014," Mahendra said, "We are also targeting to serve ventures that are new to exporting; those that haven't been able to export, including the SMEs."
When exporters need bigger financing on top of the amount they have received from existing financial resources, "LPEI is ready to cooperate *with the financial institutions* so that the exporters can have better access and bigger financing," he said, adding that LPEI provides guarantee and insurance if needed.
LPEI is expected to come up next Thursday with written responses to legislators' inquiries on the small portion of financing for SMEs.
After the hearing, Mahendra told reporters that big corporations needed bigger financing than that required by SMEs.
"A big company would find an export financing worth Rp 1 billion of little use. But the same amount could *finance exports* of 10 SMEs."
Besides, "The percentages are just our prediction, based on what we can provide and on the past performances of different levels and sizes of exporters.
"If the demand for export financing for SMEs is high, we see no problems in disbursing more than what we projected," he added.
In Monday's hearing, Mahendra also said that the government is planning to add Rp 2 trillion to LPEI's current capital of Rp 10.8 trillion.
The capital will be taken from the state budget. (adh)
