- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
February 13, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement offering an investment credit line to P.T. Bank Resona Perdania (BRP), incorporated in the Republic of Indonesia, in which Resona Bank, Limited has an equity stake. Its objective is to support overseas business deployment of mid-tier enterprises and small and medium enterprises (collectively "SMEs"). This credit line amounts up to USD13 million.
In line with this agreement, a credit line is set up at BRP to finance medium- and long-term funds necessary for the local affiliates and subsidiaries of Japanese SMEs by way of BRP.
In recent years, Japanese companies have been rapidly expanding their business operations in Indonesia against the background of its significant economic growth, and Japanese SMEs have also shown increasingly bullish investment sentiment toward the country.*1 For this reason, there has been growing long-term financing demand for their business activities. Amid these developments, JBIC intends to provide appropriate and flexible support for Indonesian business of these SMEs by financing them with medium- and long-term U.S. dollar funds in cooperation with BRP, which has broad-based business relationships with Japanese SMEs.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including SMEs, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 FY2013 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies published by JBIC reported that Indonesia climbed the rankings of promising countries/regions over the medium term (about the next three years) to first place from third in the FY2012 Survey Report. See Press Release on November 29, 2013, for details.