The Indonesian government is strengthening access to export financing to improve the performance of national exports. The Ministry of Trade is working to make financing schemes more accessible to business players through the expansion of the Special Export Assignment (PKE) program.

This message was conveyed by Acting Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, during the seminar “Socialization of Export Financing Facilities through PKE” held on October 17. The event was part of the 40th Trade Expo Indonesia (TEI), which took place from October 15 to 19 at ICE BSD City, Banten.

“To utilize preferential trade tariffs, financial support is a critical element for businesses,” said Tommy. “This support is increasingly needed amid global challenges such as geopolitical conflict, economic slowdown, and trade tensions.”

PKE Scheme Helps Businesses Face Global Uncertainty

PKE is a government-assigned scheme that provides export financing for transactions or projects deemed important to support Indonesia’s national export policies. The mandate is carried out by the Indonesian Export Financing Agency (LPEI).

Bayu Nugroho, Director of Export and Import Facilitation at the Ministry of Trade, emphasized that a solid export foundation is key to accelerating economic growth. According to him, global issues such as protectionism and geopolitical instability must be addressed with solutions that support business, including ease of doing business.

“Through the PKE financing scheme, the government is providing certainty, support, and solutions for reliable Indonesian exporters to meet demand in partner countries,” said Bayu.

Tony Prianto, Director of State Financial Risk Management at the Ministry of Finance, said that exports are a core pillar of Indonesia’s economic growth. He explained that through PKE, the government mandates LPEI to offer financing with more competitive interest rates for priority sectors such as medical devices and strategic manufacturing.

“PKE aims to provide incentives and financing support for exporters, especially those with high potential but limited capital. The program began with a railcar export project to Bangladesh and has since expanded to include financing, guarantees, and export insurance across sectors,” said Tony.

LPEI Delivers Competitive Financing for Priority Sectors

From the financial sector perspective, Agnes Rahadian, Head of the National Interest Account Department at LPEI, stated that LPEI’s main mandate is to promote national exports through three pillars: financing, guarantees, and insurance.

LPEI has received Rp13.7 trillion in State Capital Participation (PMN), and the distribution of this funding is managed in coordination with the PKE Committee, which includes the Ministry of Trade, Ministry of Finance, and Ministry of Industry.

“Unlike general assignments funded by the market, PKE uses State Capital Participation (PMN) funds, allowing for lower interest rates and more flexible terms,” said Agnes.

Indonesian Exporters Explore Opportunities in Chile and Saudi Arabia

Two Indonesian trade representatives abroad highlighted the market potential for Indonesian products in Chile and Saudi Arabia. Exporters are encouraged to use PKE financing schemes to strengthen market penetration.

Indah Fajarwati, Head of the Indonesian Trade Promotion Center (ITPC) in Santiago, presented the growing demand in Chile for healthy food products such as nutritious biscuits and coconut sugar. “These products represent major opportunities for Indonesian exporters, as they align with the growing health trend in the Latin American market,” she said.

Meanwhile, Bagas Haryotejo, Head of ITPC Jeddah, underlined the potential for Indonesian halal products to meet the needs of the Saudi Arabian market, especially for Hajj and Umrah pilgrims. “Halal products from Indonesia have great potential in Saudi Arabia, which continues to grow as a market for Indonesian businesses,” said Bagas.

Exporter: PKE Helped Business Expand into New Global Markets

During the final session of the seminar, Margareta, CEO of PT Nusantara Segar Global, shared her experience receiving export financing support that enabled her company to expand globally.

According to her, the PKE scheme significantly helped boost production capacity and allowed the company to enter new markets in the Middle East, Eastern Europe, and South Asia.

“PKE facilities truly opened the way for us to reach export markets,” said Margareta. “With government support, we became more confident in taking steps toward export and could focus on improving quality and competitiveness.”

PHOTO: KEMENDAG

This article was created with AI assistance.