Ex-Im Bank lends RI firm

Ex-Im Bank lends RI firm

TOKYO (AFP): The Export-Import Bank of Japan said yesterday it and 16 private banks would extend US$210 million in loans to an Indonesian cement maker, PT Indo Kodeco Cement.

The loans are the first of their kind to incorporate political risk, the governmental bank said.

Under the scheme, a borrower can be exempted from repayments in the event of a major crisis, including war and revolution. The Export-Import bank will extend $126 million, with the rest being provided by the 16 private banks including Fuji Bank Ltd, it said.

The loans will be used to build a cement plant in Tarjun on Kalimantan Island, the bank said.

With recent economic growth in the country, the Indonesian cement market is expected to face a "considerable supply shortage," it said.