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ndonesia Eximbank, also known as the Export Financing Agency, said that the palm oil industry accounted for most of its buyers’ credit amid the company’s efforts to diversify its financing disbursement.

“However, it’s not only crude palm oil (CPO), but also derivative products such as oleochemicals. This is part of our efforts to support government policy in encouraging exports of derivative products,” Eximbank managing director Dwi Wahyudi said on Wednesday

He said that the trend in financing buyers of oil palm products would be likely to continue next year. He added that Eximbank would maintain its focus on financing the exports of the government’s prioritized sectors, such as CPO and its derivative products, textiles, rubber and manufactured goods.

He revealed that the company was also assessing possible credit disbursement to customers of state arms manufacturer PT Pindad. Eximbank, Dwi said, already provided buyers credit for state aircraft maker PT Dirgantara Indonesia and state ship builder PT PAL.

“We see potential with Pindad. We are studying the products for which we can provide buyers with credit. Perhaps, for example, Pindad’s armored vehicles which are sold to the United Nations,” he said.

Eximbank senior managing director Arifin Indra said that the company expected growing credit disbursement despite the possible impact of the Euro debt crisis and economic slowdown in the US.

“Our company will keep growing although it will be slower than before. That’s why we support the government in encouraging exports to nontraditional countries such as in Eastern Europe and Latin America,” he said.

Arifin said that Eximbank’s financing stood at Rp 19.1 trillion (US$2.12 billion) as of Nov. 14, a significant increase from Rp 15.9 trillion in July.

He said that Eximbank predicted achieving Rp 20 trillion of financing by the end of the year.

On Wednesday, Eximbank announced that it would issue continuous bonds worth a total of Rp 10.5 trillion up to 2013, to enhance its ability to provide export credit.(rcf)