Indonesia Eximbank Gets US$580mn Foreign Loans from Two Financial Institutions

TEMPO.CO, Jakarta - The Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank obtained US$580 million loans from two international financial institutions; China Eximbank and ICBC Indonesia.

China Eximbank provides US $ 200 million in loan term facilities with a three-year tenor, while ICBC Indonesia lends US $ 380 million in three and five-year tenors.

LPEI executive director, Daniel James Rompas, said that 50 percent of the loan from China Eximbank will be used to support exporters' working capital, with priorities on projects that facilitate trade, investment and infrastructure development between Indonesia and China.

Meanwhile, the loan agreement with ICBC Indonesia is expected to help the growth of export through financing disbursement to the export-oriented sectors.

Daniel said that the LPEI continues to seek funding at competitive costs in the midst of an increasingly challenging situation due to Covid-19.

Read also: Indonesia Eximbank CEO: Everything Needs to be Maintained

M ROSSENO AJI