Jakarta. Indonesia Eximbank (LPEI) and Asuransi Asei Indonesia have joined forces to provide special credit insurance for small and medium enterprises (SMEs), known locally as PKE UKM. This collaboration aims to enhance the competitiveness of Indonesian SMEs in export markets by offering comprehensive solutions that cover both financing and insurance.

The partnership between LPEI and Asei is designed to offer credit insurance protection for export-oriented SMEs, covering up to 70 percent of defaults. The agreement was signed at LPEI headquarters in Jakarta on Friday by LPEI’s Trade Finance & Financing Division Head Berlianto Wibowo, Insurance Division Head Ilham Mustafa, Asei’s Chief Technical Officer Irsyam Fasya, and Marketing Division Head Edi Apriansah. LPEI Business Development Director Maqin U Norhadi and Asei executives, including Rachman Notowibowo, Achmad Sudiyar Dalimunthe, and Agus Sulih Purwanto, were also present.

“The collaboration between LPEI and Asei is expected to positively impact SMEs, boosting their confidence in developing products and providing better protection, which will ultimately propel the growth of our exports and improve Indonesia’s position in the global market,” Maqin said.

Asei President Director Achmad Sudiyar Dalimunthe emphasized the commitment of both agencies to support Indonesia’s export ecosystem. “We hope that the support from both agencies will accelerate the export growth of SMEs and increase their contribution to the national economy,” Achmad said.

Both LPEI and Asei are members of the Berne Union, the global association for the export credit and investment insurance industry. This cooperation agreement is anticipated to mutually enhance their business performance. The agencies, affiliated with the Finance Ministry and the State-Owned Enterprises Ministry respectively, have previously collaborated on marine cargo co-insurance.

The PKE UKM program, initiated by the government through Finance Minister Decree No. 409/KMK.08/2021, aims to support export-oriented SMEs, showcasing the government’s commitment to helping local SMEs go global. As of June 27, 2024, LPEI has injected Rp 1.05 trillion into the PKE UKM program, facilitating SME exports to more than 65 countries.

In addition to PKE UKM, LPEI is preparing a marketplace called Komodoin, designed as a platform for export learning, information sharing, export incubation, capacity building, and business matching between sellers and buyers. These multi-faceted services are expected to encourage more SMEs to expand their reach to global markets.

According to data from the SME and Cooperative Ministry, SMEs currently account for 15 percent of the national export volume, with the government targeting an increase to 17 percent this year. To support this goal, LPEI collaborates with Indonesian trade attachés and Trade Promotion Centers across five continents.

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