On the same day that the House of Representatives passed the more controversial mining bill it also passed the less controversial bill on the Indonesian Export Fund Agency (Lembaga Pembiayaan Ekspor Indonesia / LPEI). The LPEI will replace Bank Ekspor Indonesia (BEI) and is to be known as the Indonesian Eximbank. BEI is to be wound up and LPEI is to commence operations within nine months of this bill being enacted.
The basic premise of the bill is to provide support to national development within the framework of prosperity and fairness entailed by both Pancasila and the 1945 Constitution. However, the underlying drive for the passage of the bill was to ensure sufficient support for foreign trade through exports. Foreign trade is considered to be a key component in driving growth and maintaining stability in the national economy.
In order to expedite the development of this component it is necessary that Indonesia improve its competitiveness. Therefore, there is a need for an independent agency that is tasked specifically with providing fund support, guarantees, insurance, and any other related services that will drive development of the export sector. The funds, guarantees, and insurance envisaged in the bill may be either conventional or Syariah based.
The basic principles on which the bill is based include:
-
The creation of a conducive export environment;
-
Increase exports;
-
Increase production levels of export goods; and
-
Drive expansion of the micro, small, and medium scale enterprises whose products are destined for export.
The form of the LPEI is set out in the bill. However, some of the basic provisions include that the Head Office is to be located in Jakarta and branches can be located anywhere nationally or internationally as deemed necessary. The bill also sets out staffing matters including the composition of relevant boards.
Initially, the LPEI is to be capitalized with no less than IDR 4 trillion. Any shortfall in this amount is to be made up by the government through the State Budget. In generating funds to support its activities the LPEI can issue commercial paper and borrow from various sources for short, medium, and long terms. The LPEI can also source funding from Bank Indonesia (BI).
The LPEI has the authority to cancel account receivables and booked fixed assets up to a value of IDR 50 billion with the agreement of the Minister. Anything over IDR 50 billion is the exclusive domain of the Minister.
The bill was passed Tuesday (16/12/2008) and will become the law of the land no later than 30 days from that date.
On the same day that the House of Representatives passed the more controversial mining bill it also passed the less controversial bill on the Indonesian Export Fund Agency (Lembaga Pembiayaan Ekspor Indonesia / LPEI). The LPEI will replace Bank Ekspor Indonesia (BEI) and is to be known as the Indonesian Eximbank. BEI is to be wound up and LPEI is to commence operations within nine months of this bill being enacted.
The basic premise of the bill is to provide support to national development within the framework of prosperity and fairness entailed by both Pancasila and the 1945 Constitution. However, the underlying drive for the passage of the bill was to ensure sufficient support for foreign trade through exports. Foreign trade is considered to be a key component in driving growth and maintaining stability in the national economy.
In order to expedite the development of this component it is necessary that Indonesia improve its competitiveness. Therefore, there is a need for an independent agency that is tasked specifically with providing fund support, guarantees, insurance, and any other related services that will drive development of the export sector. The funds, guarantees, and insurance envisaged in the bill may be either conventional or Syariah based.
The basic principles on which the bill is based include:
-
The creation of a conducive export environment;
-
Increase exports;
-
Increase production levels of export goods; and
-
Drive expansion of the micro, small, and medium scale enterprises whose products are destined for export.
The form of the LPEI is set out in the bill. However, some of the basic provisions include that the Head Office is to be located in Jakarta and branches can be located anywhere nationally or internationally as deemed necessary. The bill also sets out staffing matters including the composition of relevant boards.
Initially, the LPEI is to be capitalized with no less than IDR 4 trillion. Any shortfall in this amount is to be made up by the government through the State Budget. In generating funds to support its activities the LPEI can issue commercial paper and borrow from various sources for short, medium, and long terms. The LPEI can also source funding from Bank Indonesia (BI).
The LPEI has the authority to cancel account receivables and booked fixed assets up to a value of IDR 50 billion with the agreement of the Minister. Anything over IDR 50 billion is the exclusive domain of the Minister.
The bill was passed Tuesday (16/12/2008) and will become the law of the land no later than 30 days from that date.
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