Indonesia’s economic growth draws ECAs from Germany, Austria, Swiss
Nearly 200 participants engaged in an Export Financing Conference held in Jakarta, Indonesia on September 19, 2023.
Jointly organized by official Export Credit Agencies (ECAs) Euler-Hermes from Germany, OeKB from Austria, and SERV from Switzerland, the ECAs joined forces for an important step in further promoting trade flows between the three countries and Indonesia by supporting export-oriented companies in their projects in Indonesia and by bringing together representatives from the political and economic spectrum.
As quoted from the press release issued during the conference, Indonesia is a promising growth market for German, Austrian, and Swiss export companies and is on its way to becoming an industrial nation. Nevertheless, the potential of the largest economy in ASEAN is still underestimated by many exporters. Yet Indonesia presents itself as a strategic market for industrial transformation technologies and relies on a sustainable modernization of the country and its industries.
In following their governments’ economic policies, export credit agencies ensure secure payment flows by insuring exporters against bad debt losses caused by economic or political factors and, in many cases, making the necessary sales financing for a transaction possible in the first place. The ECA products offered cover the entire value chain of an export transaction - from production and delivery to payment of the final installment.
The conference also allows Indonesian companies, banks, and government institutions the opportunity to get to know the export promotion instruments at first hand. With these financing options, export credit agencies are building towards best practices in Indonesia.
Several representatives from the government of each participating countries delivered the opening remarks to the conference, namely Dr. Thomas Graf, Deputy Ambassador and Chief of the Economic Department at the German Embassy in Jakarta; Dr. Thomas Loidl, The Austrian Ambassador to Indonesia; and Olivier Zehnder, the Swiss Ambassador to Indonesia, Timor-Leste, and ASEAN.
Economic institutions from Swiss and Austria that are actively operating in Jakarta, represented by the Executive Director of AHK Indonesia or EKONID Jan Roennfeld, Commercial Counsellor Advantage Austria in Jakarta Sigmund Nemeti, as well as the Chairman of the Swiss Business Hub Indonesia Roger Zbinden, also gave their remarks.
“[This event] is special because, at least from what I remember, in my 25 years in Indonesia, it is the first time that all three German speaking countries, Germany, Austria and Switzerland, have come together to joint organize an event like this in Indonesia,” said Mr. Roennfeld.
“The aim of this event is of course to promote business between Indonesia and companies from these three countries. And as we are all operating nowadays in times of increasing economic risks dan geopolitical uncertainties, that makes the benefits of the ECAs and their products to secure your companies’ payment flows against losses from economic or political factors more important,” he added.
Mr. Zehnder said: “Indonesia is a long-term partner to Switzerland, and Indonesia will remain as such in the future in all relevant field, notably the economic field. Indonesia offers great potential for infrastructure companies. Obviously, IKN [the New Capital City Nusantara] is one example, but there are hundreds of other projects in the field not related to IKN. But Indonesia also has a vision 2045, where it sees itself graduating from middle-income country status. Though Indonesian market offers formidable challenges, our experiences have shown that these can be overcome with long-term view, traceability, and stamina.”
Dr. Loidl said: “It is very meaningful that these three ECAs have decided to hold this conference in jakarta, Indonesia. Indonesia is an economic powerhouse, and it is also becoming a global political actor... Indonesia’s economy in the 20 years have given rise to ever larger and more prosperous middle class. Despite the difficult circumstances in the global economy, the outlook for Indonesia, in my assessment, is positive and promising.”