Improving the Role of Eximbanks/ECAs in the OIC Member States
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Description:
Asuransi Ekspor Indonesia (PT ASEI) was established in 1985 to provide export insurance and
export credit guarantees. PT ASEI’s purpose, as stated in its revised Articles of Association dated
10 November 2008, is to “support the enhancement of non-oil and gas export and non-export
activity, including but not limited to export insurance and credit insurance.”
PT ASEI states that it is the sole ECA of the Republic of Indonesia for non-oil and gas
commodities, and is wholly-owned by the Republic of Indonesia through the Minister of State
Owned Enterprises. Its mission is to promote Indonesian exports and support the
competitiveness of Indonesian goods and services in the international market.
PT ASEI has staff of 429 employees (2012), 19 branches and 16 marketing offices and works
with a number of banks across the country as delivery channels for its products.
ASEI’s governance structure consists of a Board of Directors responsible for management and a
Board of Commissioners, which supervises and advises the Board on behalf of ASEI’s sole
shareholder, the government of Indonesia. As a state-owned enterprise, ASEI is subject to an
annual audit of its assets, liabilities and business results, which is undertaken by a public
accountant appointed by the General Meeting of Shareholders. The Indonesian State Audit office
is also authorized to conduct audits on state-owned enterprises, including ASEI. ASEI's annual
budget is approved in the Indonesian House of Representatives as part of the country’s annual
budget hearings during which documentation on past financial and business performance is
presented by ASEI management, as well as a proposed annual budget and business plan.
ASEI’s business volume has been growing in the last few years, while its expense ratio has fallen
from 21.37% to 12.30% in 2012 and claims ratio from 13.5% to 9.26%. Overall, net profit has
grown from 37,130 millionn RP (USD 3.5 million) in 2009 steadily to 92,799 million RP (USD 8.9
million) in 2012. Fitch Ratings set ASEI’s credit
ASEI offers a typical range of export credit products, as well as some general insurance products
– both conventional and Islamic insurance (e.g. for property). In addition, it offers guarantees
and surety bonds to suppliers of goods and services to Indonesian-based projects, including
export oriented projects, to encourage sales of goods and services to these projects by reducing
counterparty payment risks. The types of products offered include bid bonds, performance
bonds, maintenance bonds, customs bonds, contra bank guarantees, excise bonds and payment
bonds.
ASEI works with foreign reinsurers (Swiss Re, Malaysian Re, Hannover Re, Trust International,
Atradius Re and Nationale Borg) to reinsurer its portfolio. ASEI has been a member of the Berne
Union since 1999.
Analysis:
ASEI has a long history of being a well-run insurer with a strong risk management culture and
good corporate governance practices. This includes a commitment to transparency and
accountability. Its annual reports are published and up-to-date.
ASEI is one of the oldest OIC ECAs and the one of two OIC country members of the Berne Union
along with ICIEC. In recent years ASEI has been expanding and has been financially successful.