Indonesia Eximbank targets solid loan growth despite weak global economy | Insider company data
(Insider Stories)-Indonesia Eximbank targets solid loan growth despite weakness in many big export markets as it offers more types of loans and local exporters push into new export destinations.
Loan growth is seen at 37% this year after loans rose 31.71% last year to 27.05 trillion rupiah ($2.8 billion) despite a turbulent global economy, the bank says.
Split almost equally, with the U.S. dollar portion totaling IDR13.17 trillion and rupiah lending IDR13.88 trillion, the loans went 50.8% to the industry, 11.9% to agribusiness, 11.1% to services, 9.4% to the transport sector, 6.7% to trade services and 10.2% to other sectors.
“Conditions for exporters are not like in previous years but the government’s program to enter non-traditional markets like Africa, the Middle East and Eastern Europe is driving credit growth,” Eximbank (LPEI) CEO I Made Erata says in a press conference. “We are also going into [lending for] export [industry] support infrastructure and SME loans.”
Last year infrastucture loans contributed 7.6% from total loans or IDR2 trillion and this year it’s targeting at least 10% growth while small to medium enterprise loans should grow to IDR3.6 trillion from IDR2.3 trillion.
Eximbank’s infrastructure loans go to state-owned exporters as well as strategic export and infrastructure SOEs, for ports, roads, warehouses and transport.
Total assets were IDR33.33 trillion or up 26.64% from the previous year’s IDR26.32 trillion. Revenue was IDR2.11 trillion compared with IDR1.67 trillion, up 26.64%, and net profit rose 27.13% to IDR585.62 billion from IDR460.64 billion.
Eximbank plans to issue plan to issue IDR3 trillion rupiah bonds with three year tenor in the first half of the year and get a syndicated US$500 million loan from foreign or multilateral institution, Managing Director Basuki Setyajid adds.
