LPEI Asked to Help Financing MSME Exports

LPEI Financing MSME Exports

This pandemic has not only claimed lives but has also slowly paralyzed the economy. Not a few businesses, both large and small, are unable to survive in the midst of the current global virus spread. Responding to this, Sri Mulyani, Minister of Finance, said that the Indonesian Export Financing Agency (LPEI) must step in to help the business world through guarantees and insurance in export activities.

“In facing the uncertainty of the business world, exporters need certainty and therefore guarantees and insurance are extremely important instruments. I hope LPEI is able to finalize its competence in this field,” she said during the webinar as quoted on Thursday (September 2).

Not only that, Sri Mulyani asked all SMVs of the Ministry of Finance including LPEI to measure the development impact of the policies implemented. LPEI’s financing to encourage exports shows a development impact of 3.51 times.

“This is part of accountability to the public that the funds used by LPEI come from state finances indeed provide real results and benefits for the community in the development and can be measured and can be explained,”

she said as reported on Republika

Cumulatively, the Central Statistics Agency (BPS) recorded that the value of Indonesia’s exports from January 2021 to June 2021 grew by 34.78 percent compared to the same period 2020. 

The LPEI’s total financing assets amounted to Rp 90.2 trillion. This amount includes financing for Micro, Small, and Medium Enterprises (MSMEs) of IDR 14.5 trillion, the value of guarantees provided by the LPEI of IDR 9.99 trillion, and insurance of IDR 9.6 trillion, growing 19 percent compared to last year’s position.