PROFILE ISSUER

Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank)

Description:

The history of modern mankind has been the story  of international trade. So prevalent is international trade on a global scale that it is one of the most influential activities that define modern civilization, today. The ability to secure a significant share of the global trade market is crucial to any nation. Simply because exports represent the key indicator of national economic growth. To date, the export market share of Indonesia is only 0.98% of the global export market. Compared to other developing nations in Asia, we are still lagging behind. Currently, India commands a 1.2% share of the market, whereas Thailand also holds more than 1.0% market share.

Increasing Indonesia’s penetration of the world‘s export markets is not as easy as turning one’s palm. The market situation of global trade today is highly competitive. While Indonesia’s role and activities in international trade still depends largely on the exporters themselves. In many nations throughout the world, efforts to increase industrial strengths and dominate world markets are undertaken, among other things by establishing the so-called sovereign financial institution with the aim of helping exporters penetrate global markets. Hence, US businesses enjoy the full support of the U.S. Eximbank In Germany there is the Kreditanstalt ffur Wiederaufbau (KfW). In Japan, the Japan Bank for International Cooperation (JBIC) and virtually every major trading nation has similar institutions, including in China, India, Korea and Thailand.

In Indonesia, the initiative to form such institution has been in progress since a decade ago. PT Bank Ekspor Indonesia (Persero) or BEI that was formed based on Government Regulation No. 37 of 1999 is the embryo of a sovereign financial institution under the name of the Indonesia Eximbank or Lembaga Pembiayaan Ekspor Indonesia (LPEI). On the basis of Presidential Decree No. 6 of 2007, the President of the Republic of Indonesia has declared that export is to be developed through LPEI.

The establishment of LPEI has been enacted by an Act. The Government proposed the bill for LPEI, in which the Minister of Finance presented the bill to the President on 25 April 2007. Subsequently, the bill was submitted by the President to the House of Representatives through the President Letter of 11 June 2007. The House gave its endorsement on 25 September 2007 to undertake discussions on the proposed bill a priority in 2007. On 21 November 2007, the House formed a Special Task Force to scrutinize the bill, and subsequently formed the  Working Committee for the bill. Having passed through this committee, the bill then went through two other teams, namely the bill Formulation Team and the bill Synchronization Team, before finally being passed into Act by the House of Representatives in its general assembly meeting on 16 December 2008.

In its preparatory measures to become Indonesia Eximbank, BEI has both strengthened and enhanced its business units, including treasury, corporate risk financing, and bank risk financing as well as Islamic banking. With Indonesia Eximbank, Exporters from Indonesia can obtain export-financing facilities that are more comprehensive and needed such as Buyer’s Credit, political risk insurance, guarantee for offshore projects and others.

Indonesia Eximbank as a sovereign institution is able to obtain wholesale long-term funding, at more competitive rates, from inter-governmental departments, multilateral institutions and others. Indonesia Eximbank can also issue securities and receive grants. It is also engaged in providing Exporters with facilities, such as: financing, guarantee, advisory services and insurance coverage. When required, Indonesia Eximbank can also provide financing to buyers overseas in the form a Buyer’s Credit. Indonesia Eximbank provides insurance coverage in four trade-related areas. They are: (i) Export risk  Insurance (ii) Payment risk Insurance (iii) Overseas investment risk Insurance for overseas Indonesian companies; and/or (iv) Political risk Insurance in the export destination country. The initial capital of Indonesia Eximbank amounts to at least Rp 4.0 trillion that is derived from the equity of BEI, and has been set aside from state asset management.

 

Security: BEXI05B
Address: Ged. BEJ, Tower II, Lt. 8, Jl. Jend. Sudirman Kav. 52-53,
Phone: 515-4638
Fax: 515-4639
Website: http://www.indonesiaeximbank.com Major Industry:
Exchanges: Sub Industry:
Currency: Employees: 0
Fiscal Yr Ends: Market Cap: 0 (IDR)
Share Type: Share Outstanding: 0
Country Closely Held Shares: 0
Established Listing:
Closing Price: (IDR) Data As Of: