Export financing bank to start soon

JAKARTA (JP): The newly established export financing Bank Ekspor Indonesia (BEI) will start operations early next month, the bank's executive has said.

BEI's president, Budi Mulya, said on Friday the government had injected Rp 3 trillion as an initial paid-up capital to support its operations.

"BEI is ready to operate sometime before August 5 to give bank guarantees, Letters of Credit and working capital facilities to exporters," he said, reported Bisnis Indonesia daily.

Budi said that BEI's paid-up capital fund was allocated from the state budget and deposited in BEI's account at Bank Indonesia (BI).

BEI was established in May to support export-oriented companies. Unlike a conventional bank, BEI will not raise funds from the public to finance its activities but from international financing agencies such Japan's Export Import Bank.

He said the establishment of the special financing agency was timely because it would begin its operation when industrial activities have indicated signs of recovery after almost two years in a distressed situation.

"Now, all related permits to put BEI in operation are in the process of getting approval from the Ministry of Justice and BI," Budi said, adding he was confident that by mid July all the approvals would be attained.

The establishment of the export financing agency was postponed several times due to a lack of funds to support its working capital and government indecisiveness whether to use an existing bank or to form a new financial institution in helping export- oriented companies.(udi)