Misbakhun Criticises LPEI's Departure from Export Financing Mandate
XI Commission of the Indonesian House of Representatives (DPR) Chairman Mukhamad Misbakhun has highlighted concerns that the Export Financing Institution (LPEI) is deviating from its original mandate. LPEI was established as a strategic financing body to boost national exports.
Misbakhun stressed that LPEI was established under Law No. 2 of 2009 on the Export Financing Institution, intended to support export transactions that commercial banks cannot finance.
“This means you are positioned as a financing institution, not a bank,” Misbakhun said during an XI Commission DPR hearing on the 2025 SMV Ministry of Finance performance report on Monday (25 May 2026).
Misbakhun argued that LPEI must revisit its foundational philosophy as a national instrument to strengthen exports, rather than merely operating like a commercial bank.
He noted that one sign of LPEI’s misdirection is the lack of development in national interest account schemes, which should be key instruments supporting export-oriented national industries.
Misbakhun compared LPEI’s role with those of established export finance institutions in developed nations such as Japan Exim Bank, US Exim Bank, and German Exim Bank, which have successfully supported strategic national companies.
“Toyota is supported by Japan Exim Bank’s national interest accounts, as are all their global flagship brands,” he said.
From this example, he believes Indonesia should adopt a similar approach through LPEI to create nationally competitive companies in the global market.
Furthermore, Misbakhun criticised LPEI’s excessive focus on SME development and village foreign exchange programmes, stating these should fall under the purview of relevant technical ministries.
“It is not your role to manage SMEs. This is what needs fixing,” emphasised the Golkar Party faction politician.
Moreover, Misbakhun raised concerns over LPEI’s legal approach towards borrowers, which he said undermines business confidence in the institution. He reminded that financing bodies must ensure borrowers feel secure to maintain trust in accessing export financing.
“Who would approach you as a borrower if you report them to the Prosecutor’s Office or KPK? No one would,” he said.
Misbakhun called for LPEI to improve internal governance while preserving its core function as a strategic financing institution supporting national export growth.