Indonesian Government will Provide Export Facilities to MENA and South Asia Market


The Indonesian government will encourage the development of exports to Africa, South Asia and the Middle East by providing export financing facilities. The total funding allocation for this facility reaches Rp 1.6 trillion based on the Decree of the Minister of Finance Number 1/KMK.08/2019.

The Ministry of Trade’s Director General of National Export Development Arlinda said the facilities to be offered were in the form of financing, guarantees and insurance for exports. “This facility is expected to further improve Indonesia’s export performance,” he said in a written statement last week.

Arlinda said, the African region, South Asia and the Middle East are potential markets for Indonesian products. The total value of trade between Indonesia and Africa in the period January to November 2018 was US$ 10.38 billion, up 30.15 percent compared to the same period the previous year.

Meanwhile, Indonesia’s total trade value with South Asian countries in January to November 2018 reached US$ 22.28 billion, an increase of 7.04 percent compared to the same period the previous year.

Meanwhile, with the Middle East, in the same period and year, it reached US$ 12.63 billion, up 16.61 percent compared to the same period in 2017.

According to Arlinda, the support of financing facilities is very much needed by export-oriented business actors, especially related to the fulfillment of raw materials from suppliers, promotion and marketing, as well as the ease of obtaining access to easier export financing and more competitive interest.

This facility is expected to increase the competitiveness and added value of Indonesian products while supporting the growth of the domestic industry.

Exporters who can utilize this facility are all business entities, including individuals who carry out export activities. Arlinda said, it also encourages business actors whose export activities can bring a positive impact directly to suppliers who are small and micro businesses.

The Director of Export Development Cooperation, Marolop Nainggolan, said that business people who are interested in utilizing these financing facilities can contact the Indonesian Export Development Agency (LPEI) or the Directorate General of National Export Development.

In addition to export financing facilities, Marolop explained, the Indonesian government also offered support in the form of export training, information on export market opportunities, and product design development. “This is intended to improve export performance and build an Indonesian brand image to non-traditional markets,” he said.

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