INDONESIA EXIMBANKS ROLE TO SUPPORT TRADE AND INVESTMENT BETWEEN - PowerPoint PPT Presentation

INDONESIA EXIMBANK’S ROLE TO SUPPORT TRADE AND INVESTMENT BETWEEN INDONESIA AND AFRICA ICE BSD City, 17 October 2019

Board of Directors of Indonesia Eximbank Sinthya Roesly Chairperson of the Board of Directors concurrently Executive Director Arif Budimanta Felia Salim Suminto Arlinda Imbang Jaya Member Member Member (Ex-Officio Ministry of Member (Ex-Officio Ministry of (Independent) (Independent) Finance of the Republic of Indonesia) Trade of the Republic of Indonesia) 1

Management Sinthya Roesly Chairperson of the Board of Directors concurrently Executive Director Yadi Jaya Ruchandi M. Guntur Dikdik Yustandi Djoko Retnadi Agus Windiarto Henry Sihotang Chesna F Anwar SEVP I SEVP II Managing Director I Managing Director II Managing Director III Managing Director IV Managing Director V 2

Indonesia Eximbank at a Glance History of Indonesia Eximbank Mandate & Responsibilities Main Activity To support national export programmes through Present 1. Financing 1999 2009 national export financing; in the form of financing, 2. Guarantee guarantee and insurance 3. Insurance IEB officially operated on IEB’s predecessor 4. Advisory Services September 1, 2009 Bank Ekspor Special Institution Status to encourage national Indonesia (“BEI”) exports established Indonesia Eximbank operates independently, in accordance to Law No. 2 of 2009 (Lex Specialist) Office Network Governance Structure Indonesia Eximbank “One Board - One Star” was established based on Law No. 2 Government Ownership of 2009 concerning 100% owned by government – the capital of IEB is Lembaga Pembiayaan not divided into shares Ekspor Indonesia (Indonesia Eximbank) International Credit Ratings  idAAA ( stable ) Pefindo : Maret, 2019  Baa2 ( Positive ) Moody’s: April, 2019  BBB ( Stable) Fitch: July, 2019  BBB ( Stable) S&P: June, 2019 3

Indonesia Eximbank’s Core Mandate as Act of the Republic of Indonesia Number 2 of 2009 General Accelerate Assignment national Internal External 1 (Commercial) export performance through Special National Solid Process, Solid Clients Solid Projects Assignment Export Policy, People, Infrastructure (National Financing Interest • Solid Research Capacity Solid (Financing, Guarantee • Solid Network Account) Knowledge/Analytics Insurance) • Solid Database • Impactful/Development • Measureable Solid Program Enhancing 2 • Demonstration Impact export competitiveness • Solid Capacity Building Skillful HR/Business • Continuous Improvement (Best Practices & excellences Player Vocational Activity) (specifically in SMEs segment) through • Incentives; Stimulus Innovation + Advisory Services/ • Provide related facility Creativity Capacity Building, Advocacy and Knowledge Management) Provide facility to support export ecosystem

The Performance Indicators Potential / Key Programs 2019 for SDG’s & Financial Inclusive Eximbank Forum & Piloting Desa Devisa Exchange Program National Export Joint Research Dashboard ( Domestic + Developmental Impact (NED) International ) Performance University ( ∆ Export, ∆ GDP, Employment, Decrease in Index Gini etc) Network for Piloting Indonesia Export Regional Development Number of Exporters Champion (UNIED) Office of Export Non-Traditional Coordination -KBEI Market Penetration (National Interest Vocational Account & FORSA Training Export (Coordination Financial Platform ) / IEB Performance ECO-e (Export Center of Digital Handholding Excellence) Program (DHP) Export Call Centre Macro Context : National Program

6 Framework Indonesia Eximbank as an Eximbank/ECA (Policy Bank) In accordance to Law No. 2 Year 2009 Vision Become a credible Eximbank in encouraging national exports that are highly competitive at the global level Mission 1 2 3 Improving the ability of businesses, Encouraging good business climate Providing national export financing services including small and medium enterprises, to sustainability that is conducive to a as well as quality consulting services as a produce good quality and competitive sustainable national export growth solution to Indonesia's export needs export-oriented products Outcome Implementation of Mandates Institutional Leadership Institutional Positioning Value Proposition Providing guidance and Providing assistance needed by Providing financing for Helping to overcome the obstacles faced consulting services to banks, parties in the framework of exports in transactions or projects that are by banks or financial institutions in financial institutions, order to produce goods and services categorized as non-bankable, but providing financing for exporters who are exporters, export goods and / or other businesses that support have prospects in increasing commercially potential and / or important producers, especially SMEs exports national exports in Indonesia's economic development and Export Oriented SMEs (Aticle 13 clause 1a) (Article 13 clause 1b) (Article 13 clause 1c) (Article 13 clause 2a) National Export Financing Financing Guarantee Advisory Services (Article 5) (Article 5 verse 1a) (Article 5 verse 1b and Article 7) (Pasal 13 verse 2a)

7 Regulatory Framework : Guidance and supervision Indonesia Eximbank Government of Indonesia through Indonesia Financial Services Authority Ministry of Finance of the Republic of Indonesia The Central Bank of the Republic of Indonesia Law No. 2 Year 2009 Law No. 21 Year 2011 Law No. 23 Year 1999 “ 100% owned by the Government, capital is not divided into shares “ Regulation, Policy Regulation Payment system and coaching Foreign Exchange and Foreign Institution Plan Supervision Debt

A Government Agency with Full Capital and Liquidity Support Capital Support Liquidity Support From Grants Under From State Budget Net Profit Retention Ministry Of Finance State Budget Law Republic of Indonesia Republic of Indonesia Republic of Indonesia Government Regulation No 9 / Law 2 / 2009 Article 19 Law 2 / 2009 Article 21 2011 Article 2 and 25 Law 2 / 2009 Article 23 (1)  Article 2: The Government The surplus allocation will provide financings to percentage shall be as In the event that IEB ’s capital The Government may IEB in accordance to as follows: becomes less than IDR 4 provide grants to IEB stated or stipulated in the  90% - General Reserve Law on the State Budget trillion, the Government shall according to provisions as and Special Purpose cover the deficiency from the stipulated or determined by Reserve  Article 25: The Ministry of state budget the State Budget Act  10% - Performance bonus Finance is essentially the and tantiem and dividend lender of last resort to IEB Source: Republic of Indonesia Law No.2 of Year 2009 on Lembaga Pembiayaan Ekspor Indonesia (Law No.2/2009) Government Regulation (‘PP’) No. 9/2011 on Procedures for Granting loans from The Government of Indonesia to IEB 8

Government Support 1 Capital support  Capital Injection IDR2.5 Trillion (eq. +/- USD172 million) already in place per June 28, 2019. Hence total capital injection from 2010 – 2019 is IDR13,8 trillion (eq. +/-USD950 million). 2 Regulatory support  Government Regulation no.43 year 2019 dated on June 18, 2019 regarding Basic Policy of National Export Financing.  MoF regulation No.199/PMK.06/2018 concerning Procedures for the Write-off – revising previous regulation i.e MoF regulation No.164/PMK.06/2013  OJK Regulation no.14/POJK.03/2018 concerning Assets Quality Assessment of Commercial Banks to Encourage the Growth of Housing Sector and Foreign Exchange.  OJK Regulation no.15/POJK.03/2018 concerning Legal Lending Limit among other thing to improve loan expansion to support priority sector including generating foreign exchange.  Circular Letter OJK No.11/SEOJK.03/2018 concerning Amendment of OJK Circular Letter No.42/SEOJK.03/2016 concerning the Guidelines for Calculating Risk-Weighted Assets for Credit Risk with Standard Approach. 9

10 Business Pillars of Indonesia Eximbank Financing Guarantee Insurance Domestic Financing Overseas Financing;   Project Guarantee Account Receivable    Working Capital Export Financing Overseas investment financing Custom Guarantee Protection     Investment Export Financing Overseas project financing Credit Guarantee Marine Cargo   Warehouse Receipt  Buyer’s Credit for Bank and Re-insurance  Export Bills Purchasing Financing Financial Institution  LC Financing  Re-guarantee  Trust Receipt Export-Oriented SME Financing;  Project Financing  Export Working Capital Financing  Supplier’s Bills Purchasing  Export Investment Financing  Export- oriented People’s Business  Warehouse Receipt Financing Credit  Export Bills Purchasing Financing Advisory Services Special Assignment  L/C Financing  Trust Receipt National Interest  Coaching Program for Syariah Financing  Project Financing Account (NIA) New Exporter (CPNE)   Suppliers Bills Purchasing Murabahah  Capacity Building   Export- oriented People’s Business Musyarakah  Corporate Social  Credit Mudharabah Responsibility (CSR)   Overseas Investment Financing Istisna  Export Oriented   Overseas Project Financing Ijaran/ Ijarah Muntahiya Bittamlik Project Development   Salaam Buyer’s Credit Facility  Wakalah  Hawalah  Kafalah