- Region: Asia
- Machinery and Equipment
- Export Loans
February 7, 2012
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1signed today a loan agreement for arranging an export credit line*2 totaling up to 60 million U.S. dollars (JBIC portion) to Indonesia Eximbank, an governmental financial institution in the Republic of Indonesia. The credit line is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Agent) and Sumitomo Mitsui Banking Corporation, with Nippon Export and Investment Insurance (NEXI) providing Buyer’s Credit Insurance for the cofinanced portion. The overall cofinancing loan amounts to 100 million U.S. dollars.
- The credit line, offered to Indonesia Eximbank, is intended to provide medium and long-term funds in U.S. dollars to finance the import of machinery, equipment and services by Indonesian companies from Japanese exporters. JBIC signed an untied loan agreement in October 2009 to Indonesia Eximbank for supporting trade finance*3. This is the second loan agreement signed between the two institutions following the above loan.
- Given expectations for the potential of future growth in the Indonesia’s domestic market, based on the country’s solid economic growth and its affordable labor force, Japanese companies have strong interest in Indonesia as a promising country for developing their business*4. Under these circumstances, this credit line will support the expansion of Japanese exports to the country and is expected to help further strengthen economic relations between the two countries.
- In partnership with Indonesia Eximbank, JBIC intends to provide continued support for the expansion of export business opportunities for Japanese companies in Indonesia by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 An export credit line is a form of export credit in which JBIC makes a commitment of a certain amount of money as a loan to a foreign bank or other entities to finance the
export of machinery and equipment from Japan.
- *3 See Press Release on October 26, 2009.
- *4 In the FY2011 (the 23rd) Survey Report on Overseas Business Operations by Japanese Manufacturing Companies JBIC announced on December 2, 2011, Indonesia ranked 5th as a promising country for overseas business over the medium term(approximately over the next three years), while ranking 4th over the long term (approximately over the next decade).
See Press Release on December 2, 2011.