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: 22 Nov 2010 | Removal date: open ended

Financial assistance in foreign market

On 22 November 2010, the Japan Bank for International Cooperation (JBIC) announced signing an IDR 475 billion (approx. USD 53 million) guarantee agreement with the Jakarta Branch of a japanese firm, The Bank of Tokyo-Mitsubishi UFJ.
This Guarantee covers the Japanese commercial bank's loan to PT. Bussan Auto Finance (BAF), which the Japanese companies Mitsui & Co., Ltd. and Yamaha Motor Co., Ltd. have equity stakes in. This loan finances BAF's sales of Yamaha motorcycles in Indonesia.
In this context JBIC stated: 'through this transaction, JBIC aims to support local currency financing by a private financial institution, and thereby sustain stable development of the Indonesian motorcycle market, and finally to contribute to enabling the Japanese auto industry to develop a voluminous segment of an emerging economy.'
 
Guarantees
JBIC provides financial guarantees for loans extended by commercial banks to overseas Japanese companies among others. More information can be found on the Bank's website under Guarantees.
 
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 COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

499 Other transport equipment & parts
8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without sidecars; sidecars.
871110 With reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50 cc
871120 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 50 cc but not exceeding 250 cc
871130 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 250 cc but not exceeding 500 cc
871140 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 500 cc but not exceeding 800 cc
871150 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 800 cc
871190 Other

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