State-owned lender Bank Negara Indonesia (BNI) is offering loans in Japanese yen to companies with a standby letter of credit (SBLC) guarantee from their parent companies in Japan issued by a BNI partner in the country.
“The yen loan is made possible through the support of a BNI branch office in Tokyo and BNI’s partner in Japan, Hyakujushi Bank Ltd.,” said BNI treasury and international director Rico Rizal Budidarmo in a statement received by The Jakarta Post on Friday, adding that the scheme offered competitive interest rates.
He said the loan facility was intended in particular for export-oriented companies.
The loan scheme was symbolically launched on Friday when BNI disbursed a loan worth 700 million Japanese yen (US$6.23 million) to PT Banshu Electric Indonesia, a company that produces vehicle’s spare parts for export. Banshu Electric Indonesia is a joint venture between local and Japanese companies; 43 percent of its products or worth about $30 million annually are exported.
Rico said applying for the loan scheme was relatively easy for Japanese companies in Indonesia, because BNI only required applicants to include one year of financial reports and SBLC from their banks in Japan, which already were cooperating with BNI.
“It is possible for a Japanese company that has operated in Indonesia for one year to get the loan facility,” Rico added.
The loan facility for Japanese companies is expected to support government efforts to invite investors, particularly from Japan. This notably includes small and medium enterprises (SME) that are already customers of Japan Regional Bank (JRB), which cooperates with BNI.
“We hope more Japanese SMEs will obtain financing through the scheme,” he added. (bbn)