ANNOUNCEMENT 09 Apr 2015In April 2015, the government of Japan announced new support for the overseas expansion of domestic firms.
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On 9 April 2015, the Japan Bank for International Cooperation (JBIC) announced its support for the expansion of a Japanese firm in Indonesia. The loan will be extended via the private PT Mitsubishi UFJ Lease Co., Ltd.. However, the original funds are provided from JBIC through a dedicated credit line to PT Mitsubishi UFJ Lease Co., Ltd..
Based on the agreement, the PT Mitsubishi UFJ Lease Co., Ltd. will receive a loan worth USD 28 million from JBIC. The purpose of the credit line is to provide finance lease services and to support the overseas production and business development of the Japanese SMEs in Indonesia.
Recently, the Japanese companies are expanding their business activities in Indonesia. Stated in the announcement, JBIC will provide timely financial support to Mitsubishi UFJ Lease Co., Ltd., which has a strong and broad range of business relationships with many SMEs in Indonesia.
The Japan Bank for International Cooperation (JBIC) is a fully governmental owned financial institution, supporting trade and overseas business activities of the Japanese firms. The described loan is part of its new facility to support overseas business development and expansion, established in 2013 (see related measure).
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.