Improving the Role of Eximbanks/ECAs in the OIC Member States
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America and Middle East. Hence, one of its success factors is its ability to finance overseas buyers
in purchasing Indonesian goods.
Aside from expanding into new markets, Indonesia Exim also continues to expand its export
sector. Guided by its mandate and based on existing financing demand, it has ventured into
construction, commodities including cocoa, coffee and rubber as well as seaweed, infrastructure
and the manufacturing sector.
Asei Re’s sensitivity to market needs and continuous innovation in filling these gaps is one of its
success factors. While it was initially created to provide export credit insurance, it has expanded
its product offerings to address existing market gaps without competing with the private sector.
Its current product offering includes different kinds of insurance such as property insurance,
liability insurance, oil and gas insurance, aviation insurance and personal accident insurance.
Asei Re has also established a Shariah Unit to meet the growing Islamic finance needs in the
market and has formed partnerships with BNI to cooperate in this area. It has adopted a flexible
business model and currently provides products and services not only for export-oriented
activities, but also for non-export related activities and is also supporting small businesses by
providing coaching services.
Asei Re, noting the demand for reinsurance services by general insurance companies who supply
non-oil and gas export and non-export activities, has already started to strengthen and expand
its reinsurance business to take advantage of the existing demand. From 2008 – 2013 alone,
premium received for such services increased from RP 9.02 billion (USD 5.98 million) to RP
180.8 billion (USD 120 million).
Through effective partnerships, Asei Re is also expanding its client base and its operations. One
such partner is the state-owned PT Asuransi Jiwasraya (Persero), with whom ASEI Re intends to
launch credit insurance products and marketing campaigns aimed at increasing their collective
market share. Asei Re is also partnering with international and domestic reinsurers as well as
peer ECAs such as Korea’s KSURE, which is providing reinsurance support to ASEI for its Korea-
affiliated companies selling products in the domestic market and exporting to the global market.
There are significant lessons to be drawn from the Indonesian examples.
1. Give the ECA a clear mandate : Indonesia’s government institutions have been clearly
mandated to support export development without competing with private sector entities
active in the market. As a result, both institutions have focused on identifying and
addressing market gaps.
2. Flexible business model and innovative new products for new/existing clientele:
By adopting business models that are sensitive to market needs, both entities have
successful designed products that meet the needs of their existing or new clientele.
Indonesia Exim has focused on supporting exports to non-traditional markets in various
regions of the globe, providing credit facilities to non-residents who are not by
commercial banks and supporting exports in new sectors. Similarly, Asei Re has
responded to market needs in the insurance and guarantee space by developing new
products (shariah-compliant facilities and reinsurance) and catering to new clientele
(SMEs).