Bank consortium to help export-oriented firms
Bank consortium to help export-oriented firms
JAKARTA (JP): Minister of Industry and Trade Luhut Pandjaitan
said on Tuesday the government planned to set up a consortium of
two state and seven foreign banks to provide financing facilities
for export-oriented firms.
Luhut said state Bank Mandiri and Bank Negara Indonesia 46
(BNI) would be part of the consortium, with Mandiri expected to
be the lead arranger.
"I've met Robby Djohan (Bank Mandiri president) to discuss how
to utilize his bank's overliquidity to help finance export-
oriented firms," Luhut said during a dialog at a national meeting
of the Indonesian Chamber of Commerce and Industry (Kadin).
Mandiri is the country's largest bank and was formed through
the merger of four state banks last year -- Bank Bumi Daya (BBD),
Bank Dagang Negara (BDN), Bank Expor Impor Indonesia (Exim) and
Bank Pembangunan Indonesia (Bapindo).
He said Mandiri owned some Rp 12 trillion in excess liquidity
which could be used to boost the country's export activities.
He did not disclose how much the government expected to raise
from Mandiri or the consortium.
"The question now is how to raise the funds."
Luhut said Mandiri would try to raise as much as possible
without disrupting its capital adequacy ratio (CAR), which is the
ratio between net equity and risk-weighted assets.
The institution's current CAR is more than 12 percent, above
the government-required minimum of 4 percent.
Luhut said he had yet to be informed about the identities of
the foreign banks.
The government last year established Bank Expor Indonesia
(BEI) with a paid up capital of Rp 3 trillion (US$375 million) to
help finance the import of raw materials for export-oriented
companies.
Despite skepticism from the business community, the bank
expected to gradually raise its export credit financing to $70
per month.
The newly appointed minister has said his priority is to
increase export revenue to help in stimulating economic recovery.
During his first week as minister, Luhut met with several
industrial associations to discuss ways of boosting their
exports.
His ministry is identifying companies with potential to
generate export revenue but in need of export capital, Luhut
said.
He previously said the government had classified 16 dominant
export commodities exclusive of oil and gas, such as textiles,
wood and electronic products.
According to the Central Bureau of Statistics, the value of
non-oil and gas exports rose 29.62 percent in the first quarter
to US$10.75 billion from $8.29 billion a year earlier.
The consortium, Luhut added, would also provide funding for
small and medium enterprises "although the amount will be
small".(bkm)