Speech for Indonesia Eximbank (LPEI) Investor's Round Table, Singapore, 17 Desember 2010

Harry Azhar Azis, PhD

Co-Chairman of Committee XI (Financel and Banking Affairs) of the House of Representative of the Republik  of Indonesia (DPR RI), December 17th, 2010, Marina Mandarin Hotel, Singapore

Distinguished Ladies and Gentlemen,

This is my great honor to be invited here by the Indonesia Eximbank (LPEI-Lembaga Pembiayaan Ekspor Indonesia) to share with you on our view of how and why we – the Indonesia’s House of Representatives – are very enthusiastic and excited to support this Eximbank.  Firstly, we have to overwiew Indonesian trade activities, especially on exports, that have been growing up so fast. Total exports by the end of this year is expected to be US$150 Billion or about 22% of Indonesia’s GDP in 2010 (US$690 Billion), compared to the exports of US 117 Billion in 2009 and US 137 Billion in 2008.  On average, it is expected that Indonesia will increase its exports for about 20% for the next five years. As data shown in 2009, Indonesia exports comprised of 63,03% industrial commodities, 16,33% oil and gas, 16,09% mining and 3,75% agricultural products.  Top four export destinations were Japan (12,3%), US (10,7%), China (9,1%) and Singapore (8,2%). Secondly, since 1998 Indonesia has been more mature of experiencing democracy that has increased significantly the public demand on attitude of transparency and accountability. Government and business entities have to deal with this increasing public needs so that the quality of public regulations and services and the fairness and the the productivity of business practices consequently have also improved. It is believed that mostly because of this, Indonesian economy has also growing so greatly. In 2002, the GDP was about US$170,9 Billion and in 2011 is expected to be US$ 777 Billion. In 2003 the government was only US$39 Billion and for budget of 2011 was approved by our parliament as much as US$ 139 Billion more than 350% increase in seven years or 50% increase yearly.  Thirdly, in this kind of the country’s spectrum, the Indonesian Eximbank is approved in our Parliament and then signed by President on 12th January 2009, a law known as Act Number 2 of 2009. This Eximbank is one of important  and of independent public agency that focuses on financing, guarantee and insurance of Indonesian export activities. The primary purpose of establishing this Eximbank is to increase Indonesian exports that could benefit the people of Indonesia as well as enrich the quality of international trade and therefore increase the welfare of humankind. Trade, globally or domestically,  as we all know will grow if and only if all people involved are better off. No trade activities will be sustainable if otherwise. With this framework of thinking, we encourage our Indonesain Eximbank to prove its best perfomance providing top quality products and services of supporting Indonesian exports  that benefits Indonesian people and its stackhorlders.

Thank you.