LPEI Provides Credit Guarantee For Export-Oriented Bank BJB Customers

JAKARTA - The Indonesian Export Financing Agency (LPEI) is said to have reached an agreement with PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk. (Bank BJB) related to credit guarantee.

LPEI Executive Director Rijani Tirtoso said the implementation of the regulation of Law No. 2 of 2009 which states that guarantees for banks that are partners in providing financing for export transactions have been given to Indonesian exporters.

"Our role as a credit enhancer will also be more optimal and accelerated with credit guarantee cooperation with Bank BJB. In addition, exporters will also be more flexible to get access to financing and develop their business capacity," he said in an official statement, Monday, January 28.

According to Rijani, through this facility, LPEI will provide guarantees for credit from Bank BJB customers (exporters) who have met the requirements.

"We believe that this collaboration with the largest Regional Development Bank (BPD) in Indonesia will expand access to export financing so that it will further eliminate the fill the market gap," he said.

On the same occasion, the President Director of Bank BJB Yuddy Renald revealed that the synergies that exist can help increase the company's performance.

"We would like to express our appreciation considering that the calculation of the RWA weighting will be 0 percent, so cooperation with LPEI is very beneficial for BJB Bank to support exports in West Java and its surroundings," he said.

To note, LPEI as an institution that has sovereign status can provide guarantees for banks with risk-weighted assets (RWA) of 0 percent. Then, the guaranteed assets have current quality and are exempt from the calculation of the maximum credit limit (BMPK) or the maximum limit for distribution of funds (BMPD).

"Support for credit guarantee facilities in the form of working capital and investment is also a tangible form of government support, which is expected to improve national export performance so that it will get better," concluded Yuddy.