IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 14 Mar 2016 | Removal date: open ended
Still in force

Trade finance

On 14 March 2016, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement amounting to JPY 9.8 billion (approx. USD 86 million) and USD 107 million with the Indonesian state-owned power company PT PLN (Persero). Additionally, the Japanese Sumitomo Mitsui Banking Corporation will co-finance the buyer's credit loan with the Japanese governmental agency Nippon Export and Investment Insurance (NEXI) providing insurance for the co-financed portion.
The loan finances PT PLN (Persero)'s purchase of various facilities for the expansion of the Lontar coal-fired power plant in Java, Indonesia. This includes the purchase of steam turbines, generators and boilers from Japanese companies.
In this context JBIC stated: 'Through JBIC's support for the export of power generation equipment by Japanese companies, this loan is expected to support Indonesia's economic development by realizing steady power supply, and, at the same time, will contribute to maintaining and strengthening the international competitiveness of Japanese industries.'
 
Buyer's credit agreements
JBIC provides direct loans named buyer's credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank hereto stated that these loans are intended to 'positively contribute to Japanese companies'. Further information can be found on the Bank's website under export loans.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
Affected trading partners are identified based on UN Comtrade's import data from 2014.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

423 Steam generators, (except central heating boilers) & parts
8402 Steam or other vapour generating boilers (other than central heating hot water boilers capable also of producing low pressure steam); superheated water boilers.
840211 Watertube boilers with a steam production exceeding 45 t per hour
840212 Watertube boilers with a steam production not exceeding 45 t per hour
840219 Other vapour generating boilers, including hybrid boilers
840220 Superheated water boilers
840290 Parts
431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840610 Turbines for marine propulsion
840681 Of an output exceeding 40 MW
840682 Of an output not exceeding 40 MW
840690 Parts

Please report this page in case you detect an inaccuracy in its content.