Jokowi signs Government Regulation on National Export Financing

Jokowi signs Government Regulation on National Export Financing

cargoes at an Indonesian seaport.

Jakarta (ANTARA) - President Joko Widodo (Jokowi) signed a Government Regulation (PP) on the National Export Financing (PEN) Basic Policy, effective June 25, 2019.

The regulation, PP No. 43 of 2019, was signed on June 18, 2019, the cabinet secretariat noted on its official website on Monday.

The government perceives the urgency to have in place a policy to support the national export development program that can boost the national economy.

The regulation stipulates that the basic policy on National Export Financing targets to promote a conducive business climate for exports and to expedite an increase in national exports, among others.

Strategies for National Export Financing focus on activities that can generate foreign exchange, save domestic foreign exchange, and enhance the nation's production capacity.

The regulation targets the exporters of micro, small- and medium-scale businesses, export-oriented medium businesses with annual sales of over Rp500 million up to Rp500 billion, cooperatives, and non-cooperative businessmen with annual sales surpassing Rp500 billion.

"National Export Financing encourages the development of businesses by existing exporters and produces new exporters," the PP states.

According to the regulation, the Indonesian Export Financing Institution (LPEI) provides facilities through financing, guarantees, and/or assurance.

These facilities can also be provided to exporters residing outside Indonesia and start-up companies. EDITED BY INE