RI commits $2.5b for trade finance

Aditya Suharmoko, The Jakarta Post, Jakarta | Tue, 09/01/2009 2:26 PM

Indonesia will commit to providing US$2.5 billion to increase trade finance and help the global trade recovery during the G20 meeting later this week, Finance Minister Sri Mulyani Indrawati says.

The total commitment is expected to be raised to $400 billion, up from $250 billion, during the meeting, ahead of the G20 summit in Pittsburgh from Sept. 24 to 25.

"With a turnover assumption of four times in two years, the [$2.5 billion] commitment will become about $10 billion," Mulyani said.

The money will be taken from the central bank's ($590 million), the government ($600 million), loans from the Japan Bank for International Cooperation or JBIC ($500 million) and state-run lenders Bank Mandiri, BRI and BNI ($830 million).