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.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsIndonesian Eximbank agrees to guarantee Permata’s export loans
Under the agreement signed in Jakarta on Friday, Indonesia Eximbank will, in the initial stage, guarantee 50 percent of Permata Bank’s loans
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Containers of export goods wait for shipment at Tanjung Priok Port in North Jakarta. Indonesia Eximbank agreed Friday to provide a guarantee for Permata Bank's export loans. (Antara/Muhammad Adimaja)
I
ndonesia Eximbank has agreed to provide a guarantee for export credits provided by Permata Bank, as part of its program to boost financing for export-oriented companies.
Under the agreement signed in Jakarta on Friday, Indonesia Eximbank, also known as the Indonesian Export Financing Institution (LPEI), will, in the initial stage, guarantee 50 percent of Permata Bank’s loans allocated to export-oriented companies.
Sinthya Roesly, the president of Indonesia Eximbank, said the agreement to partly guarantee Permata’s export credit was part of Indonesia Eximbank’s mission to provide financial support for the country’s export-oriented companies. In addition to the loan guarantee, the government-owned financing agency also has the task of providing export credit.
“We were given a mandate by the government to provide export loans provided by local banks to local companies,” Sinthya said during the signing of the cooperation agreement.
Under Law No.2/2009 on export financing, Indonesia Eximbank has the duty to guarantee other banks’ loans that are given specifically to Indonesian export-orientated companies. However, banks that want to receive a guarantee from Indonesia Eximbank must fulfill a number of requirements such as having a risk-weighted asset ratio of 0 percent and holding liquid collateral from its borrowers.
Banks must also omit their legal lending limit (BMPK) for loans given to exporting companies for as long as they are guaranteed by Indonesia Eximbank.
“We welcome other banks to join a similar agreement in the future. Obviously, the prospective banks must fulfill the requirements set by us to minimize default risks,” Sinthya told The Jakarta Post.
