$10m facility for Mandiri

JAKARTA (JP): The Dai-ichi Kangyo Bank Ltd. Singapore has agreed to provide state Bank Mandiri with a US$10 million revolving credit facility under the Japanese Minister of International Trade and Industry (MITI) trade insurance.

The scheme, according to Bank Mandiri, insures Bank Mandiri letters of credit (L/C) payable at the Dai-ichi Kangyo to Japanese exporters.

Letters of credit are used by Indonesian companies to pay for consumer and capital goods ordered from Japanese companies.

Under the scheme, Indonesian companies can delay payment for consumer goods for up to 180 days, and for capital goods for up to 360 days.

Cost of production can also be reduced under Bank Mandiri's interest rates if an L/C is issued in Japanese yen, it said.

"Using the facility will aid importers as L/Cs payable in Japan will no longer need to be confirmed by a first-class bank," the bank said in a statement. (10)