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Improving the Role of Eximbanks/ECAs in the OIC Member States

155

Bonding Facilities

Guarantee for Construction Services and/or Goods Procurement Service includes Bid / Tender

Guarantee; Performance Guarantee; Advance Payment Guarantee; Maintenance Guarantee; and

Payment Guarantee.

Advisory and Other Services

Training and Provision of Information on Trade Finance: Training and guidance aimed at

improving the capacity of export regulators, agents and sectors, particularly in connection with

regulations international trade and export financing, and providing information for potential

buyers overseas.

Technical Assistance: Assistance provided in handling international trade, financial

administration and financing, security and insurance transactions by stakeholders.

Consultancy Services to exporters and producers of export commodities, especially Micro, Small

and Medium Enterprise (MSME) sectors and Cooperates, as well as other relevant parties such as

a banks or financial institutions. Consultancy services broadly include the provision of guidance

and training on different topics related to export activity. This value-added service acts as a

distinguishing factor that make Indonesia Eximbank as a leader in fulfilling the needs of

entrepreneurs in export activities, producers of export goods or other export related business.

Islamic Finance Instruments

Shariah Debt Shifting is the transfer of debt from the indebted party to other parties that shall

bear (pay) it which can be differentiated into “Hawalah bil Ujrah” and “Wakalah bil Ujrah

andQardh”.

Shariah Export Investment Financing is based on the investment needs of the exporter in the

framework of the export of goods and services and applies the Shariah principle.

Shariah-Based figure 4

Import L/C Financing is the Import L/C Financing Facility or the Domestically Documented

Letter (SKBDN) of Credit. It is the product of distributing funds in the form of financing based on

Murabahah and Wakalah principles to settle the payment for the L/C or the Sight or Usance

SKBDN opened in the name of the customer (applicant/Importer) for the purchase of the

imported/local goods, where the goods are procured using the L/C or SKBDN payment method.

Shariah Export Working Capital Financing: This is based on the exporter’s need for working

capital in the framework of export of goods and services by applying the syariah principle.

Business Volumes:

2011

2012

2013

IDR Bn

20,928

28,301

42,786

USD Mn

2,014

2,724

4,118

Source: Annual Report

Top Exports / Export Markets:

Products Exported (2013)

HS Code Description

Value (USD Mn)

%

27

Oil & Gas

64,955 32.3%

6-15

Vegetable

20,800 10.3%

84-85

Mach/Elec

19,421

9.7%

Others

95,941 47.7%

Total

201,118 100.0%

Source: UN Comtrade

Top 3 Destinations (2013)

Order

Country

Value (USD Mn)

%

1

China

31,424 15.6%

2

Japan

28,882 14.4%

3

USA

19,809

9.8%

Others

121,003 60.2%

Total

201,118 100.0%

Source: UNComtrade