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Export activities stay strong amid global turmoil: Indonesia Eximbank

Nganjuk, E. Java (ANTARA) – Indonesia Eximbank stated that national export activities remain strong amidst the ongoing geopolitical turmoil triggered by the Middle East conflict.”Right now, up to the latest stage, all of our pipelines are still ongoing, still running well,” Indonesia Eximbank managing director of business II, Sulaeman, said during a media visit in Gresik, East Java, on Friday.To maintain export performance, the government relies on the Special Export Assignment (PKE) program, which provides comprehensive financing support, from pre-export to post-export stages, as well as guarantee facilities for businesses.In addition, Indonesia Eximbank is taking anticipatory measures through stress testing of its export financing portfolio to identify the most impacted sectors and borrowers, particularly those with exposure to the Middle East.Amidst current geopolitical uncertainty, the institution is closely monitoring the impact of global supply chain disruptions and the weakening rupiah, which could potentially impact borrower performance.Various mitigation measures have been prepared, including ensuring the selection of financing products with clear underlying transactions, for both pre-shipment and post-shipment financing.Sulaeman further detailed that Indonesia Eximbank’s current primary mandate is to encourage increased national exports through two financing schemes, including PKE for economic financing and commercial financing.Each financing under the PKE scheme has a significant multiplier effect, where every rupiah disbursed can create up to a threefold development impact.Overall, the value of PKE financing currently reaches Rp13.7 trillion (US$801.06 million), spread across six programs and seven projects.By 2025, the PKE Trade Finance facility has a total limit of Rp3.35 trillion (US$195.82 million), with disbursements reaching Rp7.68 trillion (US$448.88 million) throughout the year.The processed food sector was the largest contributor to the portfolio, accounting for 39 percent, encompassing 31 borrowers.Overall, the program has reached 18 industrial sectors, including rubber, coffee, furniture, footwear, textiles, jewelry, tea and spices, and electronics.”In addition to providing financial support to businesses, PKE Trade Finance also plays a role in encouraging development impact,” Sulaeman noted.Throughout 2025, PKE Trade Finance disbursements contributed to the creation and/or savings of Rp21.12 trillion (US$1.23 billion) in foreign exchange.However, Sulaeman reminded businesses to remain vigilant about the continued impact of global turmoil, particularly rising raw material prices, which could potentially pressure margins, particularly in the manufacturing sector.Indonesia Eximbank has prepared various mitigation scenarios and is being more selective in determining financing sectors deemed relatively safe amidst the current conditions, he added.On the same occasion, Richard Cahadi, President Director of PT Mega Global Food Industry (Kokola Group), stated that financing support from the Indonesian Eximbank played a crucial role in maintaining production continuity amidst global supply chain disruptions.He explained that the conflict in the Middle East had triggered an increase in the price of plastic raw materials due to disruptions in naphtha supplies, requiring the company to ensure the availability of packaging materials to avoid production disruptions.In this case, the PKE financing scheme helps maintain the company's liquidity, especially when suppliers implement an upfront payment system.”If we did not have their support, we would definitely have cash flow difficulties to purchase raw materials. The raw material for plastic is petroleum, whose supply chain has been disrupted. Our primary task as suppliers is to secure that first,” Richard said.