Improving the Role of Eximbanks/ECAs in the OIC Member States
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Indonesia Eximbank is expected to help provide funding in those market segments that are
currently not being served by commercial banks or financial institutions or where there is a lack
of capacity by these institutions to provide competitive financing.
Indonesia Eximbank was initially capitalized by the Government with IDR 5 trillion (about USD
400 million) which has since grown to IDR 7.9 trillion (equivalent to USD 650 million). In the
event that the capital of Indonesia Eximbank falls below IDR 4 trillion, the Government also has
the obligation to cover any capital deficit. As a result of its strong relationship with the
Government, by virtue of its legal status, financial backing of the Government and the
appointment of the Board by the Minister of Finance, Moody’s rates Indonesia Eximbank as
Baa3.
With a staff of 312 in 2013, Indonesia Eximbank offers the full range of export credit and export
finance services, including Shariah-based financing instruments. It also has a special SME
Financing program in which it provides financing to SMEs engaged in exporting including its
supporting ventures. SME Financing is divided into domestic and overseas financing through
conventional or sharia based principles.
Indonesia Eximbank also provides Consultancy Services to exporters and producers of export
commodities, as well as other parties such as banks or financial institutions. Consultancy
Services include the provision of guidance and training on a wide range of topics related to
export activity.
Eximbank partners with PT Permodalan Nasional Madani and Venture Capital corporations
around the country in order to improve access to financing for SMEs. It has also established
partnerships with foreign banks. In 2013, it signed MOUs with Russia’s State Corporation Bank
for Development and Foreign Economic Affairs (Vnescheconombank) and Banco Nacional de
Comercio Exterior (Bancomext) of Mexico. Indonesia Eximbank is also a member of the
International Development Finance Club (IDFC), a multilateral forum of development banks and
agencies supporting energy efficiency projects and climate finance. The Bank also partners with
the Asian Development Bank and KfW Germany to provide competitive financing for energy
efficiency projects, as well as through its membership in G-NEXID.
Analysis:
Indonesia Eximbank has focused on its mandate and ensured a product offering that meets the
needs of clients, including Shariah-based financing instruments. Its partnerships locally and
internationally are purpose-driven, whether to support Indonesian SMEs, or to be active in
climate finance as a member of IDFC.
The Bank has managed significant growth in its business activities and balance sheet in recent
years, even as it operates in higher risk and new market areas that commercial banks and
financial institutions are unwilling to support. Operating in markets which commercial banks are
unwilling to operate while maintaining financial sustainability is an impressive achievement by
any standards.
Asuransi Ekspor Indonesia (ASEI)