Improving the Role of Eximbanks/ECAs in the OIC Member States
84
3. By participating in international groups, monitor and follow other ECAs to diversify
its products and to develop new ones with an innovative approach: Within the
framework of a more and more integrating global business environment, to address the
evolving financial needs of exporters and to equip them with the strategic tools, not only
financial but also technical, Türk Eximbank monitor and cooperate closely with the
international groups as well as their members. After analyzing the programs of leading
ECAs, and adapting them to the unique needs of Turkish exporters and their foreign buyers,
the Bank has widened its product portfolio in recent years. As an example, throughout
newly developed “The Bill Of Exchange and Letter of Credit Discounting Program”, the Bank
has provided support to the export of buses to France in 2014.
5.2.4. Indonesia
A Flexible Business Model for Today’s Markets
Indonesia’s export base is dominated by oil and gas, mineral fuels and oils, fats and waxes and
electrical equipment and machinery, which collectively make up over 50% of total exports. Most
of these exports are destined for Japan, China, United States and India.
Indonesia has an active banking sector supporting export industries, comprised of over 100
banks, including state-owned banks, commercial banks, regional banks, Islamic banks as well as
a significant number of global banks such as Bank of America, Royal Bank of Scotland, Citibank,
Deutsche, JP Morgan Chase and Standard Chartered.
Indonesia also has two government agencies operating in the export market, Indonesia Exim
Bank and Asei Re, which provide overlapping products including export credit insurance and
guarantees. Such competition between two entities is likely to have positive outcomes since they
operate in the non-oil and gas export sectors, which is under-served by the conventional banking
and insurance players, and the availability of different offerings helps to promote export
development in these sectors.
Indonesia Exim has the mandate of ‘boosting national export performance’ and its mission
includes supporting Indonesian exporters locally and overseas to break into non-traditional
markets as well as a focus on assisting SMEs. Asei Re, Indonesia’s export credit insurance agency,
is also tasked with operating in the export market but focuses on addressing gaps in specific
non-oil and gas exports markets through the provision of export insurance and export credit
guarantees. Both entities are expected to fill gaps in the banking and insurance sector rather
than to compete with the private sector.
Indonesia Exim provides both conventional and Shariah-compliant products and services to
exporters to enable them to access global markets in priority sectors. In doing so, Indonesia
Exim is fully supported by the Indonesian government and specifically the Ministry of Finance,
which serves as its lender of last resort, providing unsecured loans in the event that the Bank
faces financial difficulties.
Indonesia’s Exim has identified a critical market gap in the export sector, namely local
commercial banks’ reluctance to provide overseas financing or financing to non-residents,
particularly for exports in non-traditional markets such as in Africa, Eastern Europe, Latin