- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
Octorber 31, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a general agreement for setting up an investment credit line totaling up to USD21 million (JBIC portion) with PT. SMFL Leasing Indonesia (SMFLIN), an Indonesian subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL), for supporting overseas business deployment of Japanese mid-tier enterprises and small and medium-sized enterprises (SMEs). The credit line is cofinanced with private financial institutions, with the overall cofinancing amount reaching USD30 million.
This credit line is set up to provide lease financing, including for facilities, required by overseas subsidiaries of Japanese SMEs to conduct business in Indonesia and other countries. This is the second investment credit line following the one set up in May 2013.*1
In recent years, Indonesia's economy has been growing significantly, and Japanese companies are accelerating their business expansion, with SMEs showing growing intention to invest in the country. Accordingly, there are increasing interest and needs for utilizing financing leases, as Japanese SMEs make capital investment.
Amid this development, JBIC intends to support appropriately and in a timely manner, the overseas business deployment of these Japanese SMEs by extending mid and long-term funds in U.S. dollars to SMFLIN in collaboration with SMFL, which has a wide range of 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, in growing markets such as Indonesia, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.