Overview of Indonesia Eximbank (Lembaga Pembiayaan Ekspor Indonesia - - PowerPoint PPT Presentation

Overview of Indonesia Eximbank

(Lembaga Pembiayaan Ekspor Indonesia / LPEI)

Education

• Master Degree PPM Business School – Jakarta

Economics - Major in Finance

• Bachelor Degree University of Indonesia

Civil Engineering Major in Structure Working Experience :

• Strategic & Development – VP / Indonesia Eximbank
• Head of Medan Regional Office - VP / Indonesia Eximbank
• Depertement Head Credit Analyst- AVP / Indonesia Eximbank
• Risk Analyst - SM / Indonesia Eximbank
• Relationship Manager / Indonesia Eximbank
• Senior Staff / Orix Indonesia Finance
• Plant Manager – Spv / PT. Jaya Readymix

JOGI ARDANA 0816-1841794 jogi@indonesiaeximbank.go.id

Agenda

2 Management Composition

3

Financial Performance

1 2

Profile of LPEI Strategic Initiative and Challenge Government Support

4 5

Management Composition

1

3

Board of Directors

4

Sinthya Roesly Chairperson of the Board of Directors concurrently Executive Director Suminto

Member (Ex-Officio Ministry of Finance of the Republic of Indonesia)

Arlinda Imbang Jaya

Member (Ex-Officio Ministry of Trade of the Republic of Indonesia)

Arif Budimanta Member

(Independent)

Felia Salim Member

(Independent)

Management

5

Sinthya Roesly Chairperson of the Board of Directors concurrently Executive Director

Dikdik Yustandi Managing Director I Djoko Retnadi Managing Director II Agus Windiarto Managing Director III Chesna F Anwar Managing Director V Yadi Jaya Ruchandi SEVP I

• M. Guntur

SEVP II Henry Sihotang Managing Director IV

Profile of LPEI

2

6

Indonesia Eximbank at a Glance

7

Special Institution Status

Indonesia Eximbank operates independently, in accordance to Law No. 2 of 2009 (Lex Specialist)

Government Ownership

100% owned by government – the capital of IEB is not divided into shares

International Credit Ratings

• idAAA (stable) Pefindo : March, 2019
• Baa2 (stable) Moody’s: April, 2019
• BBB (stable) Fitch: July, 2019
• BBB (stable) S&P: June, 2019

Office Network Mandate & Responsibilities

To support national export programmes through national export financing; in the form of financing, guarantee and insurance

Indonesia Eximbank was established based on Law No. 2

• f 2009 concerning

Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank) Main Activity History of Indonesia Eximbank 1999 2009 Present

IEB’s predecessor Bank Ekspor Indonesia (“BEI”) established IEB officially operated on September 1, 2009 to encourage national exports

• 1. Financing
• 2. Guarantee
• 3. Insurance
• 4. Advisory Services

Governance Structure

“One Board-One Star”

Governance: One Board System

8

LPEI applies “One Board System”, which Board

• f Director is sole organ of the institution. The

Board of Director roles are to formulate and determine the policies and to supervise the

• perations of institution.

Chairperson concurrently as Executive Director. Managing Director appointed by the Board of the Directors to assist Executive Director The Board of the Directors

The regulations that have been formulated by the Board of the Directors are related to: The membership of the Board of Directors shall be maximum

• f 10 (ten) persons, comprising of:
• a. 3 (three) government officials from the institution or

department in charge in fiscal, 1 (one) government

• fficial from the institution or department in charge in

trade, 1 (one) government official from the institution or department in charge in industry, 1 (one) government

• fficial from the institution or department in charge in

agriculture.

• b. maximum of 3 (three) persons from external and 1 (one)

person from internal LPEI. 1. Export financing which is the

• perationalization of National Export

Financing policy. 2. Financing, Guarantee, Insurance, and Advisory Services as well as other activities that are regulated by the Act no.2/2009. 3. Funding and Placement of Fund. 4. Supervisory of Financing, Guarantee, Insurance, and Advisory Services activities. 5. The governance of proposing, appointment, and discharge of Managing Directors 6. Formulating of Long-Term Plan and Annual Plan. 7. Evaluation of implementation of business activities. 8. Organization Structure. 9. The procurement of moving asset, immovable asset and services. 10. Legal aid.

Regulatory Framework: Guidance and supervision

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“

Government of Indonesia through Ministry of Finance of the Republic of Indonesia

Regulation, Policy and coaching Institution Plan Regulation Supervision Payment system Foreign Exchange and Foreign Debt

9

Indonesia Financial Services Authority The Central Bank of the Republic of Indonesia

9

Framework Indonesia Eximbank as an Eximbank/ECA (Policy Bank)

In accordance to Law No. 2 Year 2009 10

Become a credible Eximbank in encouraging national exports that are highly competitive at the global level

Vision Mission

Encouraging good business climate sustainability that is conducive to a sustainable national export growth Providing national export financing services as well as quality consulting services as a solution to Indonesia's export needs Improving the ability of businesses, including small and medium enterprises, to produce good quality and competitive export-oriented products

1 2 3

Outcome

Implementation of Mandates Institutional Leadership Institutional Positioning

Value Proposition

Providing assistance needed by parties in the framework of exports in

• rder to produce goods and services

and / or other businesses that support exports (Aticle 13 clause 1a) Providing financing for transactions or projects that are categorized as non-bankable, but have prospects in increasing national exports (Article 13 clause 1b) Helping to overcome the obstacles faced by banks or financial institutions in providing financing for exporters who are commercially potential and / or important in Indonesia's economic development (Article 13 clause 1c) Providing guidance and consulting services to banks, financial institutions, exporters, export goods producers, especially SMEs and Export Oriented SMEs (Article 13 clause 2a) National Export Financing (Article 5) Financing (Article 5 verse 1a) Guarantee (Article 5 verse 1b and Article 7) Advisory Services (Pasal 13 verse 2a)

10

In Article 26 Basic Policy of National Export Financing (KD-PEN), it is mentioned that Indonesia Eximbank also carries out other activities that support its duties, functions and authorities, by providing: (a) Re-

guarantee; (b) Joint Guarantee); (c) Financing for Import substitution; (d) Financing for imports of raw materials to meet the national needs; (e) Facility for trade fee activities; (f) Discounting facilities; (g) Acting as a facilitator, accelerator,

aggregator, and arranger to support export activities; (h) Conducting technical assistance; (i) Providing facility for

warehouse receipt financing and/or proofs of collateral management agreement; (j) Conducting marketing, promotion, and cooperation with government and other stakeholders at the export destination countries, while maintaining coordination with

• ther related ministries/institutions; (k) Other activities which are approved by the ministers.

Facilitator Accelerator Aggregator Arranger

Indonesia Eximbank accommodates exporters activity and/or interests with related institutions in order to tacle export obstacles Indonesia Eximbank conducts activities to simplify export

• bstacles (ex: regulations) in

export destination countries by providing facilities Indonesia Eximbank collects and gathers export information, data, and analysis for the best interest of the stakeholders, collectors and/or payment managers for export transaction Indonesia Eximbank facilitates syndicates, both with local and foreign banking to provide financing for

• verseas projects

Indonesia Eximbank’s Roles on KD-PEN

• Financing
• Guarantee
• Insurance
• Financing (Art. 6)
• Guarantee (Art. 7)
• Insurance (Art. 8)
• Advisory Services (Art.13)
• Placement (Art.14)

Mandate Implementation and Funding Support

Lembaga Pembiayaan Ekspor Indonesia

12

Source of Fund Source of Fund

General Assignment

(Commercially Viable)

Special Assignment

(National Interest Account) Issuance of securities PMN Grant Loan (foreign gov, Multilateral agencies, Bank/ FI, Government) Bank Indonesia’s placement of fund Government Equity Participation (PMN)

13

Financing

Overseas Financing;

• Overseas investment financing
• Overseas project financing
• Buyer’s Credit

Domestic Financing

• Working Capital Export Financing
• Investment Export Financing
• Warehouse Receipt
• Export Bills Purchasing Financing
• LC Financing
• Trust Receipt
• Project Financing
• Supplier’s Bills Purchasing
• Export-oriented People’s Business

Credit Export-Oriented SME Financing;

• Export Working Capital Financing
• Export Investment Financing
• Warehouse Receipt Financing
• Export Bills Purchasing Financing
• L/C Financing
• Trust Receipt
• Project Financing
• Suppliers Bills Purchasing
• Export-oriented People’s Business

Credit

• Overseas Investment Financing
• Overseas Project Financing
• Buyer’s Credit

Syariah Financing

• Murabahah
• Musyarakah
• Mudharabah
• Istisna
• Ijaran/ Ijarah Muntahiya Bittamlik
• Salaam
• Wakalah
• Hawalah
• Kafalah

Guarantee

• Project Guarantee
• Custom Guarantee
• Credit Guarantee

for Bank and Financial Institution

• Re-guarantee

Insurance

• Account Receivable

Protection

• Marine Cargo
• Re-insurance

Advisory Services

• Coaching Program

for New Exporter (CPNE)

• Capacity Building
• Corporate Social

Responsibility (CSR)

Special Assignment

National Interest Account (NIA)

Business Pillars

13

14

LPEI Positioning to Eximbank/ ECA in other Countries

Indonesia Eximbank USD8.398 Juta JBIC USD169.541 Juta China Eximbank USD530.393 Juta Korea Eximbank USD77.481 Juta Turk Eximbank USD24.652 Juta India Eximbank USD17.889 Juta US Eximbank USD28.252 Juta EFIC USD2.185 Juta Thailand Eximbank USD3.469 Juta NEXI USD15.766 Juta KFW IPEX Bank USD30.759Juta Malaysia Eximbank USD3.316 Juta As of 2017- 2018 Age Assets Against Export Value

LPEI Continuously Growing

15

120,1

Trillion

12,9

Trillion

Insurance

11,3

Trillion Guarantee

11,3

Trillion

0,3

Trillion

9,2

Trillion

Debtors

±1.288

Entitas Employees

136

People

New Exporters

23

Exporters Since established in 2009, LPEI has rapidly grown and become the main part of national export development

Trillion

77

Entities Coaching Program for New Exporters/ CPNE

Offices

8

Offices

4

Offices

Corespondence Bank/ FI

384

Institutions

200

Institutions

473

people Financing

109

Trillion

Portion of LPEI’s Direct Exporters in the National Export

16

1.82% 2.46% 3.06% 4.67% 4.57% 4.71% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00%

• 20.00

40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00 2012 2013 2014 2015 2016 2017 P Export of LPEI's Debtors (US$ Juta) National Export (US$ Juta) Share Ekspor Debitur LPEI

17

Contribution to the Government Year 2010 – 2018

From PMN Rp7 T (General Assignment) and Rp4,2 T (Special Assignment), along 2010 – 2018 LPEI has generated: 1. Contribution to the Country (PNBP+Tax+Dividen Rp6,19 T 2. Export Financing Rp108,86 T (leverage 9x), Guarantee & Insurance Rp23 T 3. Equity Rp6,50 T grew to Rp 21,19 T

149 198 238 386 543 1.387 1.100 1.189 1.005 6.502 6.964 7.550 8.299 10.437 12.362 17.441 21.268 21.189 2010 2011 2012 2013 2014 2015 2016 2017 2018

Jumlah disetor Ekuitas

(dalam Rp Miliar) Keterangan 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jumlah

• 1. Dividen/Laba Pemerintah
• 4

13 16 22 33 58 65 47 256

• 2. Pajak

149 194 225 370 503 904 721 806 729 4.602

• 3. PNBP
• 18

451 321 317 229 1.336 Jumlah 149 198 238 386 543 1.387 1.100 1.189 1.005 6.195

Financial Performances

3

18

Guarantee

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019-Q2 14 348 1.098 2.033 3.629 6.247 8.126 10.551 11.307 11.723

Billion Rupiah

Financing

Billion Rupiah

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019-Q2 9.279 15.737 20.541 27.054 40.492 55.203 74.829 88.532 101.012 108.859 104.733 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019-Q2 12.972 20.639 26.322 33.333 46.474 60.503 84.971 100.669 110.476 120.071 118.399

Business Development

19

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019-Q2 1 39 149 262 702 1.207 9.434 9.974 11.322 8.461

Insurance

Billion Rupiah

Total Assets

Billion Rupiah

IDR 57.26% USD 42.74% KORPORASI 84.79% UKM 15.09%

Financing Portfolio

20

Based on segment Based on Currency Based on Economic Sector Based of Purpose

June 2019 June 2019 June 2019 June 2019 Capital Loan 51.26% Investment Loan 48.63%

Our Debtor’s Top 10 Export Commodity Distribution and Destination Country 21

Financing Distribution

June 2019

22

• Rp. 19.485 Miliar
• Rp. 988 Miliar
• Rp. 6.284 Miliar
• Rp. 228 Miliar
• Rp. 457 Miliar
• Rp. 102 Miliar
• Rp. 868 Miliar
• Rp. 1.840 Miliar
• Rp. 3.913 Miliar
• Rp. 1.834 Miliar
• Rp. 237 Miliar
• Rp. 32.610 Miliar
• Rp. 5.820 Miliar
• Rp. 9.572 Miliar
• Rp. 4.434 Miliar
• Rp. 2.097 Miliar
• Rp. 3.967 Miliar
• Rp. 793 Miliar
• Rp. 171 Miliar
• Rp. 2.944 Miliar
• Rp. 1.545 Miliar
• Rp. 1.945 Miliar
• Rp. 1.277 Miliar
• Rp. 1.003 Miliar
• Rp. 152 Miliar
• Rp. 54 Miliar
• Rp. 28 Miliar
• Rp. 36 Miliar

Financing Portfolio

23

(Billion Rp.)

Financing to Corporations Financing to SMEs and Export SMEs

(Miliar Rp.) (Miliar Rp.)

RoG 173,2% RoG 35,3% RoG 54,0% RoG 25,0% RoG 60,3% RoG 44,5% RoG 24,5% RoG 23,4% RoG

• 1,0%

RoG 24,5% RoG 31,2% RoG 49,3% RoG 37,5% RoG 33,4% RoG 15,5% RoG 12,1% RoG 6,1% RoG

• 4,1%

A Growing SMEs and Export SMEs Financing

24

63 116 145 157 158 171 601 640 665

Jumlah debitur

The average growth of SMEs & Export SMEs Financing from 2010 – 2018 is:

49,66%

Billion Rupiah Definiton of Export SMEs (PP 43 Year 2019 regarding KD PEN article 7 point 2: Rp50 miliar ˂ GAS (Gross Annual Sales) ≤ Rp500 miliar

637 1.740 2.355 3.627 4.532 7.267 10.503 13.080 15.966 2000 4000 6000 8000 10000 12000 14000 16000 18000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

173,2% RoG 35,3% RoG 54,0% RoG 25,0% RoG 60,3% RoG 44,5% RoG 24,5% RoG 23,4%

Mandate Implementation – National Interest Account 2015-2019

25 Target 2019

1) Tourism 2) Export Development to Prospective Market 3) Other Export Program

Legal Basis

• Act no 2/2009
• Minister of Finance

Regulation No. 198/PMK.08/2017

END END

Overseas Project

26

Kinerja Insurance Buyers Country

27

Brazil (7.451) Mexico (2.866) Panaman (859) Peru (286) USA (65.846) Austria(13.971) Belgium (16.479) Bulgaria (21.495) Denmark (6.735) Ekuador (859) France (716) Georgia (2.866) Germany (14.330) Greece (18.629) Italy (3.725) Latvia (2.292) Lithuania (9.672) Netherlands (30.809) Poland (28.660) Spain (25.794) Sweden (33.940) UK (96.011) Ukraine (2.149)

AFRICA

Egypt (14.330) Morocco (3.367) Nigeria (12.180) South Africa (1.934) Tunisia (2.149) Australia (39.407) New Zealand (25.077) India (21.781) Kuwait (1.791) Lebanon (70.933) Nepal (20.778) Oman (17.196) Qatar (9.314) Russia (45.139) Saudi Arabia (7.165) Turkey (1.433) UAE (4.442) China (60.977) Indonesia (600) Japan (21.781) Korea (20.276) Malaysia (29.949) Papua N.G (12.180) Philippines (18.342) Singapore (223.118) Sri Lanka (9.314) Thailand (75.017) Vietnam (1.433)

Outstanding in million Rupiah

AMERICA AFRICA ASIA EUROPE AUSTRALIA

High Risk Country Low Risk Country Moderate Risk Country

82% 16% 0.38% 1% 1%

PERINDUSTRIAN KONSTRUKSI PERDAGANGAN PERTAMBANGAN PERTANIAN LAIN-LAIN

SECTOR INDUSTRY

The Development of Advisory Services

Coaching Program for New Exporter (CPNE)

28

New Exporter

33 Exporter

Geographical Distribution

27 Provinces

Scaling Up Training (Becoming a new Exporter)

400 UKM

Basic Training

1.500 SMEs

The implementation of the Coaching Program for New Exporters (CPNE) is intended for export-

• riented SMEs by providing training in the form of

intensive capacity building programme and

• mentoring. This program is given in the form of

socialization, training, exhibitions, guidance and other activities to non-group and group business entities. With CPNE, we provide comprehensive training covering aspects of production, finance, and management of the organization. As such, the SMEs players will have sufficient knowledge and expertise to export their products. Aside from that, they were also given an understanding of the administrative, targeted market share, as well as key advantages Indonesia's products.

Achievement on Advisory

Digital Handholding Program (DHP)

29

Medan

(12-13 February 2018)

1

Riau

(19-20 March 2018)

4

Jakarta

(25-26 April 2018) 7

2

Solo

(22-23 February 2018)

3

Surabaya

(27-28 February 2018)

Lombok

(19-20 March 2018)

5

Makassar

(14-15 May 2018)

6

In 2018 Digital Handholding Program joined by

1.100 SME

100 SME Go-Live!

EximStarter Database

1.100 SME

Creating Synergy

• Ministries/ Institution
• Central Bank
• University Network for Indonesia

Export Development (UNIED)

• Business Player Association

IEB Institute

30

Strategic Alliance

31

Strategic Initiatives and Challenges

4

32

Target and Strategy 2019

33

Financing Guarantee

2018 2019

Insurance

8,10% 2,0% 5,97% 25,0% 8,40% 2,0%

1. As credit enhancer and problem solver for national banks to increase their capacity in providing financing to export

• riented sectors

2. As the leader of national export financing and intensifying the access of financing to export SMEs, 3. Having a strong access to competitive public fund and

• ptimizing fiscal space of Government support through its

placement to LPEI, 4. Optimization liquidity management through access to source

• f fund which will be disbursed to export financing in

favorable rate. Target 2019 Strategy

Strategic Initiative 2019

34

Policy Bank

Sturdy Mandate Implementation

• Enhancing the

capability of market inteligent

• Strengthening

LPEI’s roles in international trade ecosystem Function Revitalization

• Strengthening

Guarantee Business- credit enhancer to push the national banks in financing export oriented sector

• Prioritizing

developmental impact

• f financing

Government Support

5

35

Government’s Full Support to LPEI’s Capital

36

• The LPEI’s capital shall be the state’s treasury that is separated and undivided into shares.
• As regulated in act No.2/2009, In the event that the LPEI’s capital becomes less than IDR. 4,000,000,000,000.00 (four trillion rupiah), the

Government shall cover such deficiency from the State Budget based on the applicable mechanism.

• The Government has top up LPEI’s equity in amount Rp13,7 trillion since 2010 to 2019.

The Government commits to support LPEI’s strong capital by providing: Tambahan Modal

1999 2010 2014 2015 2016 2017 2019

3 2 1 1 4 3.2 2.5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

42.21% 39.89% 31.85% 24.85% 17.74% 16.66% 13.90% 16.72% 17.99% 17.43%

Capital Adequacy Ratio

8%

Government Support

37

• Rp 1,5 trillion for general assignment and Rp1 trillion for special assignment

1 Government Equity Participation (PMN) in amount Rp2,5 trillion in 2019. 2

Regulatory support

b) 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 c) OJK Regulation no.14/POJK.03/2018 concerning Assets Quality Assessment of Commercial Banks to Encourage the Growth of Housing Sector and Foreign Exchange d) 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 e) 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. a) Government Regulation no.43 year 2019 dated on June 18, 2019 regarding Basic Policy of National Export Financing

Thank You

Disclaimer: This presentation and the information herein are provided in confidence, for the sole purpose of the disclose materials, and may not be disclosed to any third party or used for any other purpose without the express written permission of the disclosing party