LPEI to Conduct Stress Testing on Financing Portfolio

The Indonesia Export Financing Agency (LPEI) places risk management as its primary focus in maintaining the quality of its financing portfolio amid global dynamics. LPEI’s Business Executive Director II, Sulaeman, stated that the agency will conduct regular stress testing to measure the resilience of the financing portfolio and liquidity against various pressure scenarios, ranging from global economic slowdowns, exchange rate volatility, interest rate increases, to commodity price declines.

“In this way, mitigation steps can be prepared earlier,” he said when met in Gresik, East Java, on Friday, 17 April 2026. In addition, LPEI is diversifying its financing portfolio from both sector and export destination perspectives to ensure risks are not concentrated in specific markets.

Strengthening governance and risk management is also pursued through improving the quality of financing processes, more intensive portfolio monitoring, and bolstering internal control systems.

LPEI, he said, implements debtor condition oversight through an early warning system to anticipate performance declines that may be triggered by global situations. Furthermore, LPEI utilises risk mitigation instruments such as export insurance and guarantees to assist exporters in managing payment risks and international market fluctuations.

On the funding side, Sulaeman stated that LPEI is reinforcing liquidity management and funding structures to maintain financing flexibility amid potential changes in financial market conditions.

Collaboration with domestic and international financial institutions, including various export credit agencies, is also being undertaken to share risks while expanding the financing capacity for strategic export projects.