Trade financing for Indonesia

Trade financing for Indonesia

TOKYO (Nikkei): The Ministry of International Trade and
Industry has started applying stricter criteria in providing
trade insurance for projects in Indonesian, the Nihon Keizai
Shimbun reported Wednesday quoting ministry sources.

MITI has reduced the number of Indonesian banks that are
qualified to extend debt guarantees for local projects that
receive trade insurance to 33 from 42. All twenty non-Indonesian
banks remain qualified, but the number of locally-owned banks has
been nearly halved from 22, ministry officials said.

Those with low net worth or exhibit other indications of poor
financial standings lost their qualified status.

The ministry has also introduced a system to continuously
monitor the financial conditions at healthy Indonesian companies
that are qualified for its trade insurance without bank
guarantees.

Previously, the credit ratings of such businesses were
reviewed every six months. Almost 400 companies are being
monitored at present.