JAKARTA - The Indonesian Exporters’ Association (GPEI) has criticised Indonesia Eximbank for raising credit rates by 2% to 8%, saying that the policy will only make the national export sector even less competitive amid the coronavirus (COVID-19) pandemic.
“Indonesia Eximbank’s policy of increasing rates will not improve our export performance; it’s actually the total opposite,” GPEI Chairman and Indonesian Chamber of Commerce and Industry (Kadin) Deputy Chair for Trade Benny Soetrisno told Antara, Monday (20/4).
According to Mr Soetrisno, export demand has been declining due to the COVID-19 pandemic and Indonesia Eximbank’s policy will only prompt importers to seek goods somewhere else, even though part of Indonesia Eximbank’s mandates is accommodating MSMEs, which play a key role in sustaining the export sector.
“Indonesia Eximbank’s policy of raising rates amid the COVID-19 pandemic will take us backward,” said Mr Soetrisno, stressing that Bank Indonesia (BI) has lowered rates to 4.5%. “Other banks have also slashed their rates, while Indonesia Eximbank has increased theirs.” (MS)