BEI to provide less export loans

Arya Abhiseka, The Jakarta Post, Jakarta

Bank Ekspor Indonesia (BEI), a state export financing bank, plans to disburse export loans worth Rp 13.2 trillion (US$1.48 billion) this year, according to an official.

BEI president Bambang Hendrajatin said the new loans would include up to Rp 4.2 trillion for refinancing, Rp 800 billion for co-financing, Rp 180 billion for post-shipment financing, and Rp 285 billion in the form of bank guarantees.

Speaking at a press conference announcing the bank's 2002 financial performance, Bambang said that the size of the 2003 export loans would be lower than last year's Rp 19.3 trillion.

He did not give any reason for the reduction. But analysts say that the country's export performance would remain weak this year due to a host of problems both at home and overseas, including the poor business climate here and the economic slowdown in major trading partner countries like the U.S. and Japan.

Bambang said that the bank was forecasting a net profit of Rp 293 billion, lower than last year's Rp 341 billion.

"Last year's numbers were outstanding and will be difficult to surpass," he said.

Last year, BEI channeled 17 percent of its export loans to the textile sector, 16 percent to the timber and plywood sector, 15 percent to the agriculture sector, with the remainder being distributed among other sectors.

In addition to providing loans for exporters, BEI also offers consultancy services, which include giving exporters trade finance training, and advice and information regarding import- export issues.

Elsewhere, Bambang said BEI was planning to raise around Rp 300 billion by tapping the local debt market again this year.

The bank, which issued Rp 375 billion of medium-term notes (MTNs) in 2002, was considering whether or not to issue either MTNs or bonds in the first half of the year, he said.

"If the bond market is flooded by new bonds we may opt to issue MTNs," he added.

He said the bank had not yet appointed a financial advisor for such purposes.

BEI is one of a handful of local companies planning to raise funds from the local debt market this year amid declining interest rates, although most banks are still undercapitalized for providing new loans.