Improving the Role of Eximbanks/ECAs in the OIC Member States
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In 1978, SBC launched an export credit insurance program, offering pre-shipment and post-
shipment insurance on both a Whole Turnover and single risks basis. The Scheme was
established at the initiative of the Export Promotion Bureau and the Ministries of Commerce,
Industry and Finance.
Analysis:
The Bangladeshi export credit scheme has been subject to some review over the last ten years. A
2003 ADB project was undertaken to look at export development services to SMEs. This project
considered the role of SBC as the Bangladeshi export credit insurer and made a recommendation that
the export credit program of SBC be re-launched as the Bangladeshi ECA, but this recommendation
was not implemented. The Islamic Development Bank noted in its report of 2013, that the export
credit insurance industry in Bangladesh is under-developed as this product line is an ancillary
function of SBC and not given the attention required to meet the needs of exporters and banks.
SBC has never had a proper focus on the ECA part of their business, which has been overshadowed
by its other insurance activities. As a result, Bangladesh does not have an ECA or an export credit
insurer that can provide the specialized support to exporters.
3.5.3 Indonesia
Indonesia Eximbank (Lembaga Pembiayaan Ekspor Indonesia or LPEI)
Description:
After the Asian financial crisis of the 1990’s, the Indonesian government instituted policies to
promote exports and established the predecessor to Indonesia EXIM, PT Bank Ekspor Indonesia
(Persero) in 1999, initially as a state owned bank, to provide various forms of financing products
for export activities. Due to some limitations in Indonesian’s banking system in2009, the
government established the Indonesia Eximbank as an ECA and Indonesia Eximbank assumed all
BEI’s assets and liabilities as well as legal rights and obligations.
Indonesia Eximbank is 100% owned by government, established by a special law. The Bank’s
Board of Directors, appointed by the Minister of Finance, is comprised of 10 people with 6
government officials (three in charge of fiscal matters and the rest for trade, industry and
agriculture each), three from outside Eximbank and one internal. The Board of Directors
formulates its policies and supervises operations. However, as a government institution, its
mandate is tied to the national policies and priorities.
Indonesia Eximbank’s primary functions are to support the general advancement of Indonesian
exports. Eximbank is mandated to support national export programs and boost national export
performance in specific industries by providing financial tools including financing, guarantees,
insurance and advisory services aimed at encouraging SMEs to develop export-oriented
products. The government has identified priority sectors for Indonesia Eximbank to target,
specifically crude palm oil, coffee, rubber, fishery, shrimps, textiles, food processing, cocoa and
footwear and overseas construction.