Bank consortium to help export-oriented firms<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Luhut Pandjaitan
\nsaid on Tuesday the government planned to set up a consortium of
\ntwo state and seven foreign banks to provide financing facilities
\nfor export-oriented firms.<\/p>\n
Luhut said state Bank Mandiri and Bank Negara Indonesia 46
\n(BNI) would be part of the consortium, with Mandiri expected to
\nbe the lead arranger.<\/p>\n
"I've met Robby Djohan (Bank Mandiri president) to discuss how
\nto utilize his bank's overliquidity to help finance export-
\noriented firms," Luhut said during a dialog at a national meeting
\nof the Indonesian Chamber of Commerce and Industry (Kadin).<\/p>\n
Mandiri is the country's largest bank and was formed through
\nthe merger of four state banks last year -- Bank Bumi Daya (BBD),
\nBank Dagang Negara (BDN), Bank Expor Impor Indonesia (Exim) and
\nBank Pembangunan Indonesia (Bapindo).<\/p>\n
He said Mandiri owned some Rp 12 trillion in excess liquidity
\nwhich could be used to boost the country's export activities.<\/p>\n
He did not disclose how much the government expected to raise
\nfrom Mandiri or the consortium.<\/p>\n
"The question now is how to raise the funds."<\/p>\n
Luhut said Mandiri would try to raise as much as possible
\nwithout disrupting its capital adequacy ratio (CAR), which is the
\nratio between net equity and risk-weighted assets.<\/p>\n
The institution's current CAR is more than 12 percent, above
\nthe government-required minimum of 4 percent.<\/p>\n
Luhut said he had yet to be informed about the identities of
\nthe foreign banks.<\/p>\n
The government last year established Bank Expor Indonesia
\n(BEI) with a paid up capital of Rp 3 trillion (US$375 million) to
\nhelp finance the import of raw materials for export-oriented
\ncompanies.<\/p>\n
Despite skepticism from the business community, the bank
\nexpected to gradually raise its export credit financing to $70
\nper month.<\/p>\n
The newly appointed minister has said his priority is to
\nincrease export revenue to help in stimulating economic recovery.<\/p>\n
During his first week as minister, Luhut met with several
\nindustrial associations to discuss ways of boosting their
\nexports.<\/p>\n
His ministry is identifying companies with potential to
\ngenerate export revenue but in need of export capital, Luhut
\nsaid.<\/p>\n
He previously said the government had classified 16 dominant
\nexport commodities exclusive of oil and gas, such as textiles,
\nwood and electronic products.<\/p>\n
According to the Central Bureau of Statistics, the value of
\nnon-oil and gas exports rose 29.62 percent in the first quarter
\nto US$10.75 billion from $8.29 billion a year earlier.<\/p>\n
The consortium, Luhut added, would also provide funding for
\nsmall and medium enterprises "although the amount will be
\nsmall".(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-consortium-to-help-export-oriented-firms-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}