TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Indonesia Eximbank cuts lending growth target as US-China trade war starts to bite
Exports in the January to June period were down 8.57 percent year-on-year (yoy) to US$80.32 billion.
Change Size
Cranes unload shipping containers at Tanjung Priok Port, Jakarta. Indonesia Eximbank has lowered its lending target to export-oriented companies. (Antara/Muhammad Adimaja)
S
tate-owned lender Indonesia Eximbank has lowered its lending growth target to only 2 percent this year as the trade conflict between the United States and China begins to bite into the country’s exports.
Eximbank executive director Sinthya Roesly said the bank would instead boost its guarantee business by 25 percent to offset the expected 2 percent decline in lending growth from 8 percent last year.
“We're calling 2019 a consolidation year in which we are rethinking and reprofiling our business model. […] And this year, we would like to strengthen our guarantee business, insurance business and advisory business,” she said in Jakarta on Wednesday.
Exports in the January to June period were down 8.57 percent year-on-year (yoy) to US$80.32 billion.
Amid the slowdown of global trade growth, national exports have faced increasing external pressure. Many customers have had to readjust their cash flow to deal with the unfavorable global economic conditions, which have led to an increase in non-performing loans.
The bank, which is also alled the Indonesia Export Financing Agency (LPEI) disbursed a total of Rp 105.03 trillion ($7.45 billion) in loans to export-oriented companies in the first half of 2019.
Sinthya said the loans were disbursed to about 1,300 companies that exported their services or products to 160 countries.
The industrial sector received 49.03 percent of the loans, followed by the agriculture sector, 16.04 percent; small and medium enterprises (SMEs), 15.09 percent; the mining sector, 9.96 percent; the construction sector, 7.84 percent; the logistics sector, 5.18 percent; and other sectors, 11.95 percent.
In addition to its financing business, Indonesia Eximbank also recorded Rp 11.72 trillion from its guarantee business and Rp 8.46 trillion from its insurance business in the first half of 2019.
The bank’s loan disbursement rose by 8 percent to Rp 109.16 trillion in 2018 from Rp 101.01 trillion in 2017.
Meanwhile, its guarantee business increased by 7 percent to Rp 11.30 trillion in 2018 from Rp 10.55 trillion in 2017, while its insurance-related business grew 24 percent to Rp 11.32 trillion in 2018 from Rp 9.07 trillion in 2017. (hen)
