Indonesian Rupiah Loan for Automobile Manufacturing Business in Indonesia
Supporting Overseas Business Expansion of Japanese Automobile Manufacturer through Local Currency Denominated Financing under the Growth Investment Facility
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC, Governor: MAEDA Tadashi) signed on September 18 a loan agreement amounting to up to IDR2 trillion (JBIC portion) with PT Mitsubishi Motors Krama Yudha Indonesia (MMKI), an Indonesian subsidiary of Mitsubishi Motors Corporation (Mitsubishi Motors). The loan is provided under JBIC’s Growth Investment Facility*1
and is co-financed with private financial institutions, bringing the total co-financing amount to approximately IDR3.7 trillion.
The loan is intended to provide the necessary funds for MMKI to manufacture automobiles in the Republic of Indonesia.
Mitsubishi Motors, in its Mid-Term Business Plan (2020-2022), aims to concentrate its management resources on the ASEAN region, where it is competitive, and maintain/grow market share by enhancing its sales network and production capacity as well as product development in the region. This loan is intended to support Mitsubishi Motors’ overseas business in Indonesia, which is strategically important in the ASEAN region for the company, contributing to maintaining and improving the international competitiveness of the Japanese automobile industry.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, including local currency loans, and by performing its risk-assuming function.