The government, in a bid to boost foreign trade, has proposed the establishment of an agency to provide financing, underwriting and insurance for exporters, Asia Pulse reported Monday (28/1/08).
The agency, to be called the Indonesian Exports Financing Agency (LPEI), will replace Bank Ekspor Indonesia (BEI), which was established in 1999 to bolster exports, Finance Minister Sri Mulyani Indrawati said.
Under a draft law submitted to the House of Representatives last week the LPEI will have sovereign status and be treated as a government agency, Indrawati said, adding it will fill the market gap not covered by commercial banks or financial institutions.
The government will need to provide at least Rp4 trillion ($428 million) to be derived from the assets of BEI.
BEI was worth Rp10.1 trillion by the end of 2007, its president Arifin Indra said.