Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >> Economy  >> Export financing agency aims for modest growth this year
NEW UPDATES Asean Affairs   9  January 2014  

Export financing agency aims for modest growth this year

The Indonesian Export Financing Agency (LPEI) is looking to “play it safe” this year by targeting to achieve a mere 10 percent growth given the current economic slowdown, its top executive has said.

“Bank Indonesia’s higher benchmark interest rates have increased our cost of funds and therefore, financing has become somewhat expensive for us,” LPEI finance director Basuki Setyadjid said on Tuesday.

The LPEI, also known as Indonesia Eximbank, was established in 2009. The agency is wholly owned by the government.

Basuki said that the government, through the Finance Ministry, had approved its 2014 business plan.

With the target, the agency’s total outstanding financing is estimated to reach around Rp 44.53 trillion (US$3.63 billion).

Basuki said that Indonesia’s traditional markets — such as China, India and the US — were expected to dominate its export destinations by around 80 percent from the current 60 percent, especially since those countries were showing economic improvements after a period of recession.

The rest of the exports will be made to nontraditional markets, such as African and Southeast Asian countries.

“The countries are increasingly important for our business,” he said.

“Surprisingly, our sarong products, instant noodle and snacks are in high demand in Africa.”

Myanmar is on LPEI’s “promising economies list” as well because businesses have begun to thrive in that country, according to Basuki.

So far, it markets crude palm oil and biomass-based electric technology to Myanmar.

This year, the LPEI is also looking to facilitate the purchase of a warship by the Timor Leste government.

The deal is part of a National Interest Account (NIA) between the two countries.

The government has previously stated that the NIA is a government policy that, despite being commercially nonviable, may help boost exports.

To fund its financing target in 2014, the LPEI plans to look for bank loans.

It may issue debt papers as well, provided that the market “is on the rise”, according to Basuki.

Meanwhile, LPEI’s unaudited financial report reveals that slowdown in the commodity sector did not significantly affect its business throughout 2013.

Its total financing jumped by almost 50 percent to Rp 40.48 trillion, which was also supported by the weakening rupiah.

All of its business segments recorded increases; industry, mining, agriculture, transportation and construction.

One of its major financing activities in 2013 involved the disbursement of a $22 million-worth import financing activity to a third party in Singapore.

LPEI took part in the financing of a nickel smelter owned by PT Sulawesi Mining Investment in Morowali, Central Sulawesi province, as well.

The smelter is being constructed in several stages and LPEI’s financing will reach about $50 million.

The financial report also shows that LPEI’s bottom line surged at a similar pace as its financing activities.

The net profits jumped 48.7 percent to Rp 870.64 billion.

As of December 2013, its total assets stood at Rp 46.45 trillion.

Its liabilities and equities amounted to Rp 38.14 trillion and Rp 8.31 trillion, respectively.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories   9 January 2014 Subsribe Now !
• Foreign envoys assured of safety during Bangkok Shutdown Subcribe: Asean Affairs Global Magazine
• NACC resolves to press charges against 308 legislators Asean Affairs Premium
 • Export financing agency aims for modest growth this year
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Cebu Pacific buys Tigerair Philippines for $15M
• 400 SOEs bankrupt or dissolved in 2013: Finance Ministry report
Asean Analysis                    8 January 2014 Advertise Your Brand
• Asean Analysis-January 8, 2014
Open Letter by 47 Asian NGOs to Prime Minister Hun Sen:
Asean Stock Watch     8 January 2014
The Biweekly Update
• The Biweekly Update  January 2, 2014

• Asean Stock Watch-January 8, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand