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Republic of Indonesia / Loan Insurance for Auto Financing of PT OTO Multiartha


March 27, 2018

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Kazuhiko Bando) has decided to provide insurance for a loan provided by ING Bank N.V., Tokyo Branch and Development Bank of Japan Inc. to PT OTO Multiartha (“OTO”), an Indonesian affiliated company of Sumitomo Corporation. NEXI’s insurance will support the two commercial banks’ JPY 2.5 billion loan.

OTO’s main business is to provide auto loans to consumers in the Republic of Indonesia for purchasing four-wheel vehicles, which are mainly manufactured by Japanese car companies. Sale volume of four-wheel vehicles has grown significantly in Indonesia, driven by rising population and income levels.

NEXI’s insurance support to financing activity of OTO is expected to contribute to further increase in sales of Japanese automakers in Indonesia.

NEXI will continue to provide support for global business activities by Japanese companies.


(Reference)
Insured ING Bank N.V., Tokyo Branch
Development Bank of Japan Inc.
Insurable Value JPY 2.5 billion
Tenor 3 years
Covered Risk Political Risk 100%

Contact: Infrastructure Group, Structured and Trade Finance Insurance Department
     Tel: 03-3512-7674

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