Jakarta. The need for export guarantees and insurance is growing amidst the challenges facing international trade.

This push for guarantees was also a major focus at the 2025 LPEI Export Forum held by Lembaga Pembiayaan Ekspor Indonesia (LPEI). According to ICC Banking Commission Indonesia chair Herry Hykmanto, geopolitical tensions call for market diversification. Export guarantees and insurance products can be crucial alternative risk mitigation instruments for growth, market expansion, and business resilience.

"Guarantees and insurance enable businesses to enter new markets, participate in international tenders, and reduce payment risks," said Herry Hykmanto.

LPEI or Indonesia Eximbank’s executive vice president Suharyanto noted the shift in payment methods in international trade transactions. What used to be dominated by letters of credit (LCs) has now shifted to other payment methods following technological advancements.

"International trade is entering the digital era, where conventional [physical] collection methods through couriers are being phased out and replaced by digital collection. Exporters and importers can agree to process collections online by uploading documents, including shipping documents and invoices, processing approvals, and monitoring payment schedules. This will make transaction flows more efficient, faster, and safer," said Suharyanto.

Suharyanto advised businesses to adapt to the ever-changing global landscape. Indonesia Eximbank offers export insurance products such as trade credit insurance (TCI), which protects exporters against the risk of buyer default due to commercial or political risks, with up to 90% indemnity.  Businesses can also apply for marine cargo insurance to protect against the risk of damage or loss of goods during shipment.

Indonesia Eximbank is also offering credit guarantees to banks with a risk weighted asset calculation of 0-20%. This gives banks an alternative solution to increase their financing capacity. Banks also have the opportunity to obtain exemption from the license limit BMPK calculation, providing greater room for healthy credit expansion.

Indonesia Eximbank can also support exporters with guarantee products that refer to regulations commonly used in domestic and international trade, including URDG, ISP98, UCP600, the Civil Code, or national laws agreed upon by the parties.

"The combination of products within a solution-oriented facility structure makes Indonesia Eximbank's guarantee a strategic instrument for strengthening banking competitiveness in supporting export financing," Suharyanto said.

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