- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
September 4, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement amounting up to 5,000 million Indonesia rupiah (JBIC portion) with PT. KOYAMA INDONESIA (KI), an Indonesian subsidiary of Koyama Precision Works Inc. (Koyama Precision; Headquarters: Shizuoka prefecture; President: Mr. Masato Koyama). The loan is cofinanced with Hamamatsu Shinkin Bank, which brings the overall cofinancing amount equivalent to approximately 100 million yen.
- The loan is intended to finance the manufacturing and sales of motorcycle and automobile precision parts to be supplied to the local Japanese automobile manufactures and affiliates by KI in Indonesia in local currency. This is the first loan provided to an SME in Indonesian rupiah for JBIC.
- Koyama Precision manufactures parts for motorcycle, automobile and transportation equipment and it established KI in 2002 in Indonesia, responding to major clients needs. The medium-term demand for motorcycles and automobiles in Indonesia is expected to grow further, as the middle class is expanding with its steady economic growth. Amid this circumstance, KI intends to meet the needs of prospective increases in production and in local procurement of the local Japanese motorcycle and automobile manufactures and affiliates. This loan will support business deployment of Japanese companies in Indonesia through the financing in local currency. Such a loan will thus contribute to maintaining and improving the international competitiveness of Japanese industries.
- As a public financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including mid-tier enterprises as well as small and medium-sized enterprises, in growing markets such as Indonesia, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.