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Indonesia Eximbank financing soars by 18.31%
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Indonesia Eximbank acting president director Suswijono Moegiarso (center) and other members of the board of directors pose for a photograph during the press conference in Jakarta on March 15. (JP/Anton Hermansyah)
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tate-owned Indonesia Eximbank saw an increase in its financing in 2016 by 18.31 percent to Rp 88.53 trillion amid a sluggish export performance in 2016.
Acting president director Susiwijono Moegiarso said the growth was supported by export-based small and medium enterprise (SME) financing that soared by 44.54 percent year-on year (yoy) to Rp 10.5 trillion.
Around 15.04 percent of the Rp 88.53 trillion in total financing was done in sharia schemes.
"For next year, we plan to increase SME financing by 50 percent," he said during a press conference in Jakarta on Wednesday.
(Read also: Indonesia Eximbank to issue $1.55b in debt paper in 2017)
The bank's interest and profit-sharing revenues also increased by 18.3 percent to Rp 6.63 trillion.
However, net income slightly decreased by 1.2 percent to Rp 1.41 trillion from Rp 1.43 trillion in 2015.
Indonesia Eximbank director Raharjo Adisusanto said the reduction in net income was mostly caused by an increase in interest expenses by 36.4 percent yoy to Rp 4.25 trillion.
"Our interest expenses increased because we shifted our debt from US dollars to rupiah. The cost of funds in rupiah is more expensive than dollars," he said.
The bank’s foreign currency debt outstanding decreased by 1.4 percent yoy to Rp 38.05 trillion, while rupiah denominated debt increased by 37.6 percent yoy to Rp 39.87 trillion.
"Our rupiah denominated bond issuance bloated to Rp 16 trillion from the planned Rp 8 trillion because our customers shifted to rupiah denominated financing in anticipation of the US Federal Reserve’s fund rate increase," he said. (bbn)
