___________________________________________________________________________
2013/FMP/WKSP4/008 Session: III
Trade Finance and SME
Submitted by: Indonesia
Workshop on Trade FinanceLombok, Indonesia
1 July 2013
Jakarta (HQ)
Makassar
Surabaya
Medan
Office Network Corporate Overview
1999
2009
IEB’s predecessor Bank Ekspor Indonesia (“BEI”)
established
IEB commences operations on 1 September 2009 mandated to
support the national export programs
All assets and liabilities, legal rights and obligations of
BEI were transferred to IEB on establishment
Not subject to commercial banking regulations: IEB
operates independently under Act No.2/2009(1)
Wholly-owned by the State with sovereign status
Cannot be privatized under
Act 2 / 2009
Rated in line with the sovereign
Baa3 (Stable) Moody’s BBB- (Stable) Fitch
Special Institution Status Government Ownership International Ratings
2000
The Government of Indonesia commits in law to establish IEB per
Letter of Intent with the IMF
Note: (1) Republic of Indonesia No.366/KMK.06/2009 dated August 24, 2009
(2) Republic of Indonesia Act No.2 of Year 2009 on Lembaga Pembiayaan Ekspor Indonesia (Act No.2/2009)
A SOVEREIGN ENTITY TO SUPPORT INDONESIA’S NATIONAL EXPORT PROGRAMS
Providing financing to domestic and foreign entities in both conventional
and Islamic form
Financing
A range of guarantees provided to Indonesian exporters,
overseas importers and tenders related to project performance
Guarantee
Insurance facilities for exporters in the event existing export insurance
agencies cannot provide services
Insurance
Trade related consulting and technical assistance services
Advisory Services
Government of Indonesia projects to support Indonesia’s economy – risk is assumed by Indonesian
Government
National Interest Account
Priority Sectors Priority sectors in line with government’s program
Crude Palm Oil, Coffee, Rubber, Fishery, Shrimp, Textile, Processing Food, Cocoa and Footwear; Construction Services
IEB SERVICES
SME EXPORTER Importer
1. Financing 2. Loan
payment
Do
mestic
Inte
rna
tio
na
l
• End User Risk • Directly providing financing
to clients (exporters, indirect exporters and supporting export
4
TYPE I : DIRECT FINANCING FOR SME
NO CLIENTS BUSINESS SECTOR
AREA EXPORT DESTINATION TOTAL OUTSTANDING
1 Coal Transporation Service
Sulawesi Selatan Asia, Europe IDR 1.687.500.000
2 Trading Fruits and Vegetables, Plantation
Bandung, Medan, Tegal, Jakarta, Sumatera, Sulawesi
Bangladesh, China, Egypt, Mauritius, Nepal, Pakistan, U.A.E, Uruguay, Venezuela, Vietnam
IDR 120.877.347.681
3 Fishery and Poultry
Jakarta, Maluku, Jawa Timur, Sulawesi
Thailand, USA, Singapore
IDR 60.055.216.382
4 Textile, Furniture Bandung, Medan, Tegal, Jakarta, Sumatera, Sulawesi
Australia, China, Denmark, France, Japan, Malaysia, Netherland, Phillipines, Singapore, Taiwan, USA, UK, Vietnam, South Korea
IDR 560.821.345.178
5 Cacao, Seaweed, Coconut Fibre
Jakarta, Maluku, Jawa Timur, Sulawesi
Thailand, USA, Singapore
IDR 60.055.216.382
TOTAL IDR 803.496.625.500
TYPE I : DIRECT FINANCING FOR SME
Per May 2013
EXPORTER IMPORTER SME/SUPPLIER
2. Notification on claims
1. Supply goods
3. Loan extension
(discounted
receivables)
4. Loan
payment
Do
mestic
Inte
rna
tio
na
l
6
TYPE II : LINKAGE PROGRAM
• Corporate Risk • Financing to suppliers of
exporters (existing IEB clients / blue chip companies).
NO CLIENTS BUSINESS
SECTOR OPERATIONAL
AREA EXPORT DESTINATION TOTAL OUTSTANDING
1 Contractor Jakarta Asia, Europe IDR 3.000.000.000
2 Fertilizer trading Sulawesi, Kalimantan
Bangladesh, China, Egypt, Mauritius, Nepal, Pakistan, U.A.E, Uruguay, Venezuela, Vietnam
IDR 2.641.678.600
3 Fishery Sulawesi Thailand, USA, Singapore
IDR 6.301.375.424
4 Furniture Central Java China, Denmark, Singapore, Taiwan, USA
IDR 9.973.000.000
5 Fruits and Vegetables Jakarta, Maluku, Jawa Timur, Sulawesi
Thailand, USA, Singapore
IDR 2.678.828.340
TOTAL IDR 24.594.882.360
TYPE II : LINKAGE PROGRAM
Per May 2013
SME EXPORTER IMPORTER SME TRADER
/SUPPLIER
3. Supply Goods
BANK /
NBFI
1. Fund
2. Provide Loan
Do
mestic
Inte
rna
tio
na
l
8
• Financial Institution Risk • Financing to Financial Institutions that
have direct / indirect export oriented clients.
TYPE III : REFINANCING
NO CLIENTS BUSINESS
SECTOR OPERATIONAL AREA TOTAL OUTSTANDING
1 Finance Company
Bali, NTB, East Java, Jogjakarta, Kalimantan, Jakarta, Sumatera
IDR 201.180.805.769
2 Coffee Bean Trading Sumatera IDR 7.500.000.000
3 Plantation, Seaweed Jakarta, Maluku, Jawa Timur, Sulawesi
IDR 10.429.356.594
TOTAL IDR 219.110.162.363
TYPE III : REFINANCING
Per May 2013
TRADE FINANCE SERVICES
I. IMPORT FINANCING – UPAS LC/SKBDN In UPAS LC / SKBDN financing, customers get a deferred payment in accordance with the tenor of LC / SKBDN Usance issued. While the payment to the Beneficiary done by sight basis by Reimbursing/Refinancing Bank. II. EXPORT BILLS NEGOTIATION/DISCOUNT LPEI purchase on draft (notes) and / or complying presentation documents or under Issuing Bank’s Acceptance by making advance payments or agree to pay to the Beneficiary at the time of or before being reimbursed by the Issuing/Reimbursing Bank.
NO CLIENTS BUSINESS SECTOR
AREA EXPORT DESTINATION TOTAL VOLUME
1 Fishery Sulawesi USA, Italy, Australia USD. 81.900,00
TOTAL USD. 81.900,00
EXPORT BILLS NEGOTIATION
Per May 2013
• Industrial Efficiency and Pollution Control Phase II EUR 4,5 juta Project IEPC 2
• Investment in industrial efficiency or pollution control activities Purpose
• Some portion can be utilized as working capital
• Longer tenor for investment
• Production efficiency increase
• Environmental friendly industry
Benefit for SME
KfW FINANCING
Overseas
Buyer SME
Exporter
( Protection against Non Payment Risk of The Buyer)
Do
mes
tic
Inte
rnat
ional
3. Account Receivable
Protection
1. Export
2. Buyer Underwriting
6. PAY A CLAIM
B A N K
Protected Account Receivable is used as collateral to the Bank
4. LOAN
5. CLAIM
CREDIT INSURANCE FOR
ACCOUNT RECEIVABLE PROTECTION
CUSTOMER CREDIT INSURANCE FOR ACCOUNT RECEIVABLE PROTECTION
NO CLIENTS AREA EXPORT DESTINATION TOTAL POLICY OUTSTANDING
1 Cacao Tangerang
South Korea, Malaysia, Thailand, Hong Kong, Singapore, Cina, Taiwan, Singapore, Vietnam, Kenya, China
IDR 11.742.458.000
2 Coal Trader Kalimantan UK, US, Spanyol, Malaysia, South Africa, Bulgaria, Lithuania
IDR 8.963.000.000
3 Producer of Seaweed
Surabaya Germany IDR 24.815.000.000
TOTAL IDR 45.520.458.000
Per May 2013
To improve the capacity and the ability of SME to become a competitive company.
Technical assistance in managing the company, improving the quality of product, and managing business to support the export activities.
To assists the access to finance and the international trade.
Counseling and advisory services for supporting the export and import activities.
15
ADVISORY FOR SME
SME CLIENT FROM IEB ADVISORY PROGRAM
NO BUSINESS SECTOR
AREA ADVISORY PROGRAM
EXPORT DESTINATION
OUTSTANDING
1 Textile Pekalongan Workshop on Export Financing
Saudi Arabia, Dubai, Malaysia, Singapur, Thailand
IDR 7.180.000.000
2 Wood Semarang
Workshop on Export Procedures and Export Financing
US, China, Jepang, Australia, Europe
IDR 50.000.000.000
TOTAL IDR 57.180.000.000
Per May 2013
17
The experience, commitment and competency of The Trade Financing Institution
Regulation from the Government to support SME export
Capacity building for SME Client
Coordination & cooperation among Government agency and SME Trade Financing Institution
KEY DRIVERS TO SUCCESS SME FINANCING