Regional Discussion 34th Trade Expo Indonesia 2019: Export to Asia - - PowerPoint PPT Presentation

Regional Discussion 34th Trade Expo Indonesia 2019: Export to Asia

Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank)

Raden Gerald S. Grisanto Head of Advisory Services Division

+62 82126906666 gerald.grisanto@indonesiaeximbank.go.id

Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank) Head of Advisory Services Division PT Tuban Petrochemical Industries Vice President (VP), Business Development PT Perusahaan Pengelola Aset (Persero) Vice President (VP), Investment Deloitte Indonesia Manager, Advisory Services Ernst & Young Indonesia Senior Associate, Assurance Phd Candidate School of Business and Management ITB Master of Accounting University of Indonesia Bachelor of Economics Trisakti University Edith Cowan University, Australia

Experiences: Qualification: Certification:

• Chartered Accountant (CA)
• Certified Management Accountant (CMA)
• Certified Public Accountant (CPA)
• Professional Financial Modeler (PFM)

Agenda

2 Indonesia Eximbank Profile

3

Export to Asia

1 2

Financial Performance

Indonesia Eximbank Profile

1

3

Indonesia Eximbank at a Glance

4

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”

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

In accordance to Law No. 2 Year 2009 5

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)

5

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

7

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)

8

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

8

9

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 Position on Export Credit Disbursement

10

Share Internal Bank Credit Disbursement (Miliar Rp)

Bank Campuran

• Bank Capital Indonesia
• Bank Chinatrust Indonesia
• Bank Commonwealth
• Bank DBS Indonesia
• Bank KEB Indonesia
• Bank Maybank Syariah Indonesia
• Bank Mizuho Indonesia
• Bank Rabobank International

Indonesia

• Bank Resona Perdania
• Bank Sumitomo Mitsui Trust Bank

Limited

• Bank Windu Kentjana Internasional
• Bank Woori Indonesia

Bank Asing

• Bank of America
• The Royal Bank of Scotland
• Bankok Bank
• Citibank
• HSBC
• Bank of China
• Deutsche Bank
• JP Morgan Chase Bank
• The Bank of Tokyo-Mitsubishi UFJ
• Standard Chartered Bank

Indonesia Eximbank 44,9%

Share to total of National Export Credit (Commercial Banks & LPEI)

Bank Campuran 13,5% Bank Persero 13,5% Bank Asing 13,0% BUSN Devisa 14,9%

Sumber : LPEI dan OJK (diolah)

As of 30 April 2019

LPEI Continuously Growing

11

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

12

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

13

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

2

14

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

15

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

16

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 17

Financing Distribution

June 2019

18

• 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

19

(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

20

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%

Economic and Social Impact

21

Manufacture 18% Food Industry 15% Farming 14% Mining 10% Spinning and Textile 8% Transportation and Communication 6% Construction 8% Petrolium and Chemical 4% Electricity, Gas, Water 4% Trade, restaurant, Hotel 4% Jasa dan Lain-lain 4% Wood Industry 3% Fisheries, livestock 2% Agriculture 0%

Financing Portion based on Economic Sector

June 2019

Developmental Impact

(Money Multiplier) Export Increment

3,59x

GDP Increment

2,46x

Job Creation

60

Thousand of people per Rp1 triliun of Financing

Mandate Implementation – National Interest Account 2015-2019

22 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

23

Kinerja Insurance Buyers Country

24

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)

25

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

• f

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)

26

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

27

Strategic Alliance

28

Export to Asia

4

29

Indonesia Export Value

30

Importers

Exported value in 2014 Exported value in 2015 Exported value in 2016 Exported value in 2017 Exported value in 2018 World

176.036.194 150.366.281 144.489.796 168.810.043 180.215.034

Asia Aggregation

124.485.464 103.627.048 98.101.922 119.339.899 129.821.764

Indonesia’s export value to Asia has reached up to 72% of its export value to the world and its dominated By China.

5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral ... Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal ... Vehicles other than railway or tramway rolling stock, and parts and accessories thereof Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television ... Iron and steel Indonesia's exports to World Indonesia's exports to Asia

95% 91% 69% 82% 64%

South Asia as a New Potential Market

31

• South Asia remains World’s Fastest

Growing Region with a percentage of 9,2% of the Asia’s GDP, most of which are sustained by India’s solid economy.

• The UN projects that the rate of

population growth in South Asia will continue to increase from decade to decade compared to

• ther

Asian regions.

• By 2030, around 24% of the world's

population is in South Asia. Assuming the population growth can be managed properly, it will support the economic growth of South Asia.

Export Potential to South Asia

32

• Comparing among eight South Asian countries, India’s

import demand from Indonesia is the highest, with a share

• f 91.81%. However, if India is excluded and only 7 other

countries are compared, Pakistan and Bangladesh have considerable demand. Meanwhile, the Maldives continued to show high import growth.

India Pakistan Bangladesh Sri Lanka Maldives Potential Imported Product

(1) Palm Oil; (2) Coal; (3) Ore, crust & metal ash; (4) Rubber and Rubber Products (especially: Tires and Natural Rubber); and (5) Pulp, paper / cardboard, books & other printed papers. (1) Palm Oil; (2) Vehicles and parts (especially: Cars and components); (4) Fruits; and (5) Textiles & textile products. (1) Palm Oil; (2) Textiles and Textile Products (especially: artificial staple fibers); (3) Pulp, paper / cardboard, books & other printed papers; (4) Coal; and (5) Plastics and plastic products. (1) Pulp, paper / cardboard, books and printed paper (mainly: Uncoated Paper / Cardboard); (2) Textiles and textile products; (3) Rubber and rubber products; (4) Plastics and plastic goods; and (5) Tobacco. (1) Furniture and home lighting; (2) Cement; (3) Soaps and cleaners (4) Wood, articles of wood; and (5) Plastics and plastic goods.

USD 3.5billion (growing 9.7% per year) USD 1.8billion (growing 9.5% per year) USD 496million (growing 5.9% per year) USD 55million (growing 9.5% per year) Import Value USD 24.1billion (growing 10% per year)

Thank You

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