LPEI Expected To Concentrate On Boosting Exports

Jakarta (Antara Bali) - A lawmaker has asked the Indonesian Export Financing Agency (LPEI) to concentrate more on boosting exports as a number of indicators showed that the country's economic growth is on the rise.

"The economic growth could have been higher if exports and imports grow in positive area," Deputy chairman of the Commission XI of the House of Representatives (DPR) Achmad Hafisz Tohir said here on Wednesday.

Hafizs said the country's economy grew  slightly by 5 percent in 2016 driven by 5 percent growth of the household consumption sector.

The politician from the National Mandate Party (PAN) said the trend showed that there was  growing trend that needs to be maintained and bolstered, he said.  
    
Meanwhile, another lawmaker from the Commission Mukhamad Misbakhun asked LPEI to focus on its main duty and function  and should not divert its attentions to involving itself in other areas such as people's credit (LUR) scheme.

"KUR is the portion of state  and private banks," Misbakhun said.

He said LPEI as a financing agency is indeed more flexible than banks  as under the Law No. 2 of 2009, it is not bound by the rigid  banking regulation.

Earlier, the Customs and Excises Directorate General  and LPEI expressed commitment to helping boost exports of the products of medium and small industries (IKM) with financing credit facility.

"The Customs and LPEI  would provide fully support  with simplification of procedure and financing credits," acting chairman of LPEI board of directors Susiwijono said in a statement here on Tuesday.

Susiwijono  said the commitment was in line with simplifying Import Facility to Back up Export (KITE) for IKM that the products of small industries  would be more competitive in international market.

Meanwhile, the Manila-based Asian Development Bank (ADB) predicted Indonesia economy  would grow 5.1 percent this year, slightly stronger than a growth of 5 percent in 2016.

ADB President Takehito Nakao said growing investment and strong consumption sector contributed to the economic growth.

Takeshito Nakao told reporters after a meeting with President Joko Widodo  that the Indonesian government has done well amid global financial uncertainties.

"I am impressed by the strong commitment  by the government of Indonesia to policy reform that strengthens the market confidence." he said.

Since September 2015, Indonesia has launched 14 policy packages marked with deregulation measure as part of its policy reform program. (WDY)