Indonesian Rupiah Loan for Automobile Manufacturing Business of Indonesian Subsidiary of Mitsubishi Motors Corporation
Supporting Overseas Business Expansion of Japanese Automobile Manufacturer through Local Currency Denominated Financing
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 28 a loan agreement amounting to up to IDR1.062 trillion (JBIC portion) with PT Mitsubishi Motors Krama Yudha Indonesia (MMKI), an Indonesian subsidiary of Mitsubishi Motors Corporation (Mitsubishi Motors). The loan is co-financed with private financial institutions, bringing the total co-financing amount to IDR1.77 trillion.
The loan is intended to provide the necessary funds for MMKI to manufacture automobiles in the Republic of Indonesia. The loan follows a similar loan made to MMKI in September 2020*1
Mitsubishi Motors 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.