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LPEI expects to see Rp 9.26t in guarantee business
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Containers are being loaded at the New Priok Container Terminal in Kalibaru, North Jakarta. The Indonesian Export Financing Agency (LPEI) hopes to see export activities rebound in 2017. (Tribunnews/Herudin)
T
he Indonesian Export Financing Agency (LPEI), also known as Indonesia Eximbank, expects to book 14 percent growth in its guarantee business this year.
With such growth, LPEI hopes to see the outstanding value of the guarantee business stand at Rp 9.26 trillion (US$696.34 million) by year-end from Rp 8.13 trillion in 2016.
LPEI managing director Indra Arifin Supriadi attributed its optimism to the number of infrastructure projects carried out by the government that needed guarantee coverage, namely seaports and airports.
Data from the agency shows that it recorded 1,108 guarantee contracts in 2016 and more than 80 percent were related to projects.
LPEI’s board of directors’ head, Sisiwojono Moegiarso, told Kontan the agency hoped export performance would improve in 2017, which would then lead to an improvement in the finances of its debtors.
Last year, LPEI’s gross non-performing loan ratio, which is the ratio of bad debts, surged to almost 4 percent from 3.5 percent in 2015.
Sisiwojono said the higher NPL ratio was caused by the global economic slowdown and the price decrease of several commodities, on which Indonesia relied. “That surely affected the debtors’ liquidity,” he said.
LPEI plans to restructure the loan portfolio of several debtors and also hopes to book an 18.7 percent annual increase in outstanding financing to Rp 105.09 trillion in 2017.
Total exports fell by 3.9 percent year-on-year (yoy) to $144.43 billion in 2016, another yearly decline after a 14.6 percent yoy decrease in 2015, according to the Central Statistics Agency (BPS). (tas)
