LPEI encourages exporters to expand into non-traditional markets amid global turmoil

SURABAYA - The Indonesian Export Financing Institution (LPEI) or Indonesia Eximbank encourages exporters to expand market reach to non-traditional regions amid increasing global geopolitical uncertainty.

This effort is considered crucial as demand from major markets weakens due to conflicts in the Middle East, so that exporters are encouraged to diversify markets to maintain sales stability.

Head of the NIA & Strategic Assignment Division of LPEI Berlianto Wibowo explained that his party has a special mandate from the government to provide support that is not provided by commercial banks.

He added that the mandate was carried out through the National Interest Account (NIA) scheme, which serves as an instrument for state intervention in maintaining the sustainability of national exports.

"Maybe from Indonesia Eximbank we convey the details that one of the state's evidence is present, we call it a special mandate. This government provides one of the programs that is given only to Indonesia Eximbank, which is different from commercial banks," he said during a working visit to Nganjuk Regency, Thursday.

In addition to providing financing, LPEI is also active in providing assistance to debtors and prospective debtors through various educational programs, and the materials provided include an understanding of macroeconomic conditions, analysis of affected destination countries, and strategies for surviving in the midst of global change.

According to Berlianto, an educational approach is an important first step so that business actors can understand the situation before making business decisions.

He added that regular discussions with exporters were also being carried out to update information related to risks in various destination countries.

LPEI also encourages market diversification as a main strategy in facing a slowdown in traditional markets such as the United States and China.

He added that exporters were directed to explore new markets in Africa, South Asia, the Middle East, Eastern Europe, and Latin America.

"One of the programs that does have an impact on the export actors is how they diversify the market. If the market conditions are not good, we have a special export assignment program," he said.

Furthermore, he said, LPEI has nine special export assignment programs designed to meet the needs of business actors, including small and medium enterprises (SMEs).

According to him, through the SME Special Export Assignment Program (PKE), LPEI is trying to increase the competitiveness of products so that they can compete in the global market.

For information, PKE is a program that provides financing, guarantee, and insurance facilities for export transactions or projects that are commercially difficult to carry out, but have strategic value for the national economy.

In addition to market expansion, protection against transaction risks is also an important concern, and in unstable geopolitical conditions, the risk of default from foreign trading partners is a threat to exporters.

To anticipate this, he added that LPEI provides trade credit insurance facilities to protect exporters' bills from potential default, and this scheme is supported by an internal database to map the level of risk in each destination country.

"Do we need it, well the last one we have is called trade credit insurance. We call it insurance when there is a failure to pay, we take care of it," he said.

Through a combination of education, market diversification, financing support, and risk protection, LPEI seeks to maintain growth opportunities for national exporters amid global pressures.

This approach emphasizes the role of LPEI not only as a financing institution, but also as a strategic partner that actively accompanies business actors in designing adaptive and sustainable business strategies.