LPEI Optimizing State Equity Participation For National Export Development

Photo; While. LPEI

JAKARTA - The Indonesian Export Financing Agency (LPEI) as the Special Mission Vehicle (SMV) of the Indonesian Ministry of Finance today signed a Statement of Commitment for Government Investment Recipients witnessed by the Minister of Finance of the Republic of Indonesia, the Director General of State Assets and the Director General of Financing and Risk Management, the Ministry of Finance.

As a special institution that has a mandate to provide national export financing in the form of financing, guarantee, and insurance as well as consulting services, LPEI has received State Equity Participation (PMN) to strengthen capital and increase LPEI's business capacity which has been received since 2010 with a value of Rp. 28, 7 trillion as of December 2021.

The Executive Director of LPEI, Rijani Tirtoso, in the signing of the Statement of Commitment of Government Investment Recipients, said that PMN is distributed by LPEI for financing and guarantees in the context of general assignments and special assignments. These special assignments are channeled to support projects or programs deemed important by the state, including in the context of National Economic Recovery. PMN received by LPEI has had a positive impact on both institutions and the state.

“For institutions, PMN has helped LPEI to be able to accelerate financing up to Rp. 84 trillion, Guarantees including PEN of Rp. 13 trillion, Insurance of Rp. 11 trillion, as well as the creation of new exporters and 6 Foreign Exchange Village Programs with 27 fostered villages. For the state, LPEI has generated PNBP contributions for the state with a total of Rp. 1.4 trillion, all in the period 2010 to 2021," said Rijani in a written statement, Thursday, January 6.

In addition, for the financing disbursed in 2021, LPEI has a development impact such as an increase in investment of 2.5 times or IDR 212 trillion, an increase in PB of 2.5 times or worth IDR 211 trillion, an increase in exports of up to 3.6 times or a value of IDR 302 trillion, and employment reached 51 people per Rp1 billion of financing disbursed by LPEI.

With these various achievements, LPEI will continue to optimize the PMN received to improve the country's economy through exports. In 2022, LPEI will again distribute PMN of IDR 5 trillion to the SME segment on a commercial and special basis.

"We will maximally distribute PMNs, both commercial and special assignments, such as Regional PKE, SMEs, Trade Finance, transportation equipment. Meanwhile, from Consulting Services, LPEI will target export house collaboration programs in 4 regions, namely Solo, Jakarta, Makassar and Surabaya, 100 new SME exporters and 10 new Foreign Exchange Village Cluster Programs. Achieving all of these targets will of course require collaboration with all stakeholders in the export ecosystem,” concluded Rijani.