Greatindonesia.co.id, Jakarta – The UK Export Finance (UKEF) has selected Indonesia as the first nation in the world to have a country head to lead UKEF’s efforts to enhance trade relations between the United Kingdom and Indonesia.
“The choice of Indonesia as UKEF’s first overseas presence demonstrates the importance that the United Kingdom attaches to further developing Indonesia as a key trading and investment partner,” British Ambassador to Indonesia Moazzam Malik noted in a press release received by Antara on Monday.
As the British government’s Export Credit Agency, UKEF will help buyers across the world to trade with suppliers in the United Kingdom by offering attractive financing options.
Through this local presence in Jakarta, the UKEF will be better placed to deliver competitive and innovative finance to Indonesian companies and public bodies doing business with the United Kingdom.
“Significant opportunities exist for the two countries to cooperate in the key priority sectors, such as infrastructure, as was identified by the current administration and where the United Kingdom can offer added value,” Malik noted.
Richard Michael, the new country head for UKEF in Indonesia, remarked that in addition to its market-leading product range, UKEF is one of the few export credit agencies able to provide finance in local currencies, including the rupiah.
“UKEF is open for business in Indonesia, with billions of dollars in capacity now available for the country,” he added.
As the world’s oldest export credit agency established in 1919, UKEF will assist overseas buyers of British goods and services in terms of procuring from suppliers in the United Kingdom that offer quality and innovation by providing attractive financing options; borrowing at competitive interest rates from banks, with the benefit of a strong guarantee backed by the government of the United Kingdom; borrowing directly from the Government of the United Kingdom at competitive, fixed interest rates; and maintaining flexibility, with finance that can also be used to procure local supplies or those from other countries, alongside British supplies.
UKEF works with exporters in the United Kingdom and their overseas buyers to offer attractive financing options, including repayment terms of 2-10 years and up to 18 in some sectors, such as renewable energy; flexible British content requirements for projects supported; capital markets refinancing; sharia-compliant structures; as well as more than 40 local currency options, including Chinese Yuan, Hong Kong Dollars, Indian Rupee, Indonesian Rupiah, Malaysian Ringgit, Singapore Dollars, and Thai Baht.
RUPIAH STRENGTHENS SLIGHTLY FOLLOWING BI INTERVENTION
Greatindonesia.co.id, Jakarta – The rupiah strengthened slightly against the United States (US) dollar in the Jakarta interbank market Tuesday (8/10/2019) evening following Bank Indonesia’s intervention in the money market. The rupiah rose one point, or 0.01 percent, to Rp14,162 against the dollar compared to Rp14,163 earlier.
Bank Indonesia (BI) intervened in the foreign currency and bond markets through domestic non-deliverable forwards (DNDF) to stabilize the local unit, PT Garuda Berjangka Director Ibrahim Assuaibi said in Jakarta Tuesday (8/10/2019).
“The intervention has successfully prevented the Garuda currency from weakening although Bank Indonesia announced yesterday the country’s foreign exchange reserves which nosedived by US$2.12 billion to $124.32 billion as of late September compared to a month earlier. The drop is the first in the three past months,” he said.
The country’s foreign exchange reserves fell in September 2019 due to the repayment of the government’s foreign debts and the declining placement of foreign currencies by the banking industry in the central bank which has three times lowered its benchmark interest rate since early this year.
The government paid an interest of Rp172.42 trillion from January to August 2019, up 6.25 percent compared to the same period last year.
On the external side, hope for peaceful trade negotiations between the US and China again became the main topic Tuesday. The latest report shows China is more doubtful of reach a wide-ranging trade agreement.
The trade tension between the two countries escalated several days before the talks began when the US reportedly blacklisted eight Chinese technological companies Monday, October 7, on charges of human rights violations against the Muslim minority in Xinjiang province.
The rupiah opened lower in the morning trade at Rp17,175. Throughout the day, it fluctuated between Rp14.137 and Rp14,175 against the dollar. (cam)
IHSG INDEX CLOSES LOWER OVER FOREX RESERVE PLUNGE
Greatindonesia.co.id, Jakarta – The Jakarta composite index (IHSG) closed lower on Monday evening due to a dip in Indonesia’s foreign exchange reserves in September 2019.
The index of the Indonesian Stock Exchange (BEI) plummeted 60.67 points, or one percent, to reach 6,000.58, while the index of the 45 most liquid stocks fell 11.6 points, or 1.23 percent, to 931.04.
“The country’s foreign exchange reserves that declined to US$124.3 billion, from US$126.4 billion, spurred investors into profit taking, thereby causing the IHSG to nosedive,” Binaartha Sekuritas analyst M. Nafan Aji Gusta remarked in Jakarta on Monday (7/10/2019).
An hour after opening stronger, the IHSG weakened and remained in the red zone all through the day.
The IHSG closed, with net foreign buying recorded at Rp144.84 billion.
Trade on Monday was recorded, with 445,575 transactions, and 17.22 billion shares, worth Rp7.39 trillion, changing hands. Gainers were outnumbered by decliners, with 131 shares against 272 shares, with 139 shares remaining unchanged.
Regional markets, such as the Nikkei Index, plunged 34.95 points, or 0.16 percent, to 21,375.25, while the Straits Times Index strengthened 21.12 points, or 0.69 percent, to 3,099.48. (cam)
INDONESIA’S FOREX RESERVES DIP TO US$124.3 BILLION AT 2019 SEPT-END
Greatindonesia.co.id, Jakarta – Indonesia’s foreign exchange (forex) reserves were recorded at US$124.3 billion at the end of September 2019, a drop from $126.4 billion during the corresponding period a month earlier.
At $124.3 billion, the September-end forex reserves stood above the international adequacy standard of three months of imports and was equal to 7.2 months of imports or seven months of imports and official external debt payments.
“Bank Indonesia assesses that foreign exchange reserves are able to support the resiliency of the external sector and maintain the stability of macroeconomic and financial systems,” Director of the Communication Department of Bank Indonesia Junanto Herdiawan noted in a statement in Jakarta on Monday (7/10/2019).
Herdiawan emphasized that the dip in forex reserves in September 2019 was chiefly influenced by the payment of government foreign debt and reduced placement of foreign exchange banking at Bank Indonesia.
Going forward, he affirmed that Bank Indonesia views foreign exchange reserves to remain adequate, bolstered by stability and a favorable economic outlook. (abh)
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