1. AND ITS ROLE AS INDONESIA'S EXPORT CREDIT AGENCY
GTR 5th Annual Indonesia
Trade & Commodity Finance Conference
INTRODUCTION OF
THE "NEW" ASEI
AND ITS ROLE AS INDONESIA'S EXPORT CREDIT AGENCY
Badruz Zaman
23 April 2015

2. BRIEF INTRODUCTION AND HISTORY OF ASEI

3. NEWLY RESTRUCTURED ASEI
3 January >
ASEI Re officially changed its name to Reasuransi Indonesia Utama (Indonesia Re)
1 July >
ASEI changed its name to ASEI RE
21 October > Asuransi ASEI received its operating license from OJK
18 December >
ASEI Re spun-off its existing business /portfolio to newly established Asuransi ASEI
Will become the “Giant Reinsurer” setup to decrease current account deficit
Asuransi ASEI (ASEI) continues/resumes its business and function as the Indonesian ECA

4. ASEI PORTFOLIO SPREAD (2014) INSURANCE PRODUCTS/ SERVICES
ASEI'S BUSINESS PORTFOLIO (SNAPSHOT)
INSURANCE PRODUCTS/
SERVICES
ASEI PORTFOLIO
SPREAD
(2014)

5. CREDIT INSURANCE CREDIT INSURANCE Clients Products Banks or ECAs or
Export Credit
Insurance
Exporters
Manufacturers
Trading coys
Construction coys
Distributors
Domestic Credit
Insurance
CREDIT
INSURANCE
Banks or
Non-Bank
Financial
Institutions
(Multifinance)
Export Bill
Insurance
Domestic Credit
Insurance
Financing
ECAs or
Local/
Foreign
Credit Insurers
Reinsurance
(Inward)

6. Export Credit Insurance Domestic Credit Insurance
Types of Transactions
covered by ASEI Credit Insurance
CREDIT INSURANCE
Import/investments
from any country
to Indonesia
(Short-term
and Medium/
Long term)
Exports of goods and
/or services
(Short-term)
Sales of goods
and/services
to domestic market
on credit terms
(Short-term
and Medium-term)
Factoring/invoice
discounting
facilities provided
by banks
to exporters/sellers
(Short-term)
Reinsurance
Export Credit Insurance
Domestic Credit Insurance
EBI/DCIF

7. PRIVATE CREDIT INSURER Business Purpose/Role
ASEI vs Private Credit Insurers
(Main Similarities and Differences) NO
ASPECT
ASEI
PRIVATE CREDIT INSURER 1
Business Purpose/Role
In accordance with Laws on SOEs no.19/2003 ->
Generally contribute to national economic development, and specifically contribute to (non-tax) state revenues
Goods and/or services provided must meet the public needs
Provide assistances to SMES, cooperatives and the public in general
Provide what the private market can't*
Make Profit (commercially driven)*
In accordance with Government Regulation no 1./1982 ->
"To support national non oil & gas exports through export credit insurance and export credit guarantees"
Make Profit and Increase Market Share/Lead Market*
Contribute to own revenue (unless business is written on State Account)
Global business development

8. PRIVATE CREDIT INSURER
ASEI vs Private Credit Insurers
(Main Similarities and Differences) NO
ASPECT
ASEI
PRIVATE CREDIT INSURER 2
Business Orientation
Main business "Export Credit Guarantees" was initially supported through Government Program but due to high Non-performing loans, Program ceased in 1995 and ASEI started to develop other insurance lines (general insurance, domestic credit guarantees, bonding and reinsurance)
Majority of Trade credit insurance portfolio (Export and domestic) still focused on short-term transactions/accounts* (Law of Large Numbers) to balance out medium-long term business
Developing Medium-Long term credit insurance and inward reinsurance business through ECA Cooperation* for export, import and domestic transactions -> Infrastructure/powerplant projects
Credit Insurance, Bonding and Reinsurance
Trade credit insurance portfolio (Export and domestic) only focused on short-term transactions/accounts /marketable risk* unless business is written on State Account
Do not write medium-long term business /non-marketable risk (unless business is written on State-Account)

9. ASEI - ECA COOPERATION SCHEME
(POWER-PLANT PROJECT)
Badruz Zaman
23 April 2015

10. PRIVATE CREDIT INSURER (Outward) Reinsurance Support
ASEI vs Private Credit Insurers
(Main Similarities and Differences) NO
ASPECT
ASEI
PRIVATE CREDIT INSURER 3
Market
Credit Insurance:
Indonesian Companies/Joint Ventures/ Blue Chip Companies* and other SOEs
Reinsurance (Inward):
Provided to other ECAs, Foreign Private Credit Insurers, Local Private Credit insurers
Indonesian Companies/Joint Ventures/Blue Chip Companies* and Global companies/accounts
Provided through local agency/fronting arrangements to Indonesian Insurance Companies 4
(Outward) Reinsurance Support
To local reinsurance market
(prior to OJK ruling which rules to place/cede credit insurance risk locally, reinsurance was also provided by foreign reinsurance market)
Self-Retained or on case-by-case basis ceded to Loyds Insurance Market

11. CONSTRAINS IN DEVELOPING CREDIT INSURANCE IN INDONESIA

12. THANK YOU
Badruz Zaman
23 April 2015