Republic of Indonesia / Insurance to Support Kobelco Construction Machinery Exports

April 6, 2018

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; President and CEO: Kazuhiko Bando) has decided to provide Export Credit Insurance (Specific) to support export of construction machinery manufactured by Kobelco Construction Machinery Co., Ltd., which will be purchased by P.T. Superkrane Mitra Utama (Superkrane) of the Republic of Indonesia from JA Mitsui Leasing, Ltd. on deferred payment terms of more than two years.

Based on a five-year infrastructure plan announced in 2015 by the Indonesian government, Indonesia is promoting its infrastructure development such as public transportation, seaport, airport and road, which is vital for Indonesia’s sustainable economic growth. This has led to a growing demand for construction machinery in Indonesia and also fiercer competition among foreign machinery suppliers. Under such circumstances, JA Mitsui Leasing takes advantage of NEXI’s insurance support to export five crawler cranes manufactured by Kobelco Construction Machinery on 8.5-year deferred payment terms.

Deferred payment is an important finance arrangement provided by an exporter, especially for a small-volume importer who has difficulty in borrowing from a bank for reasons such as disproportionate administrative burden. To help Japanese exporters offer deferred payment terms, NEXI provides Export Credit Insurance coverage for transactions on deferred payment terms of not less than two years.

As a financial institution implementing Japan’s policy, NEXI will continue to actively support Japanese exports.

Insured JA Mitsui Leasing, Ltd.
Type of Insurance Export Credit Insurance (Specific Insurance)
Tenor (post shipment) 8.5 years
Covered Risks Pre-shipment Political Risk 60% Commercial Risk 60%
Post-shipment Political Risk 97.5% Commercial Risk 95%

Overseas Investment Insurance Underwriting Group
Underwriting Department