In intention to increase non-oil and gas export, in 1985 Government of Indonesia founded PT. (Persero) Asuransi Ekspor Indonesia (ASEI) with main business in insurance and guarantees to support non-oil and gas export development stipulated in Government Act No. 20 in 1983.
Different from other general insurance organization, ASEI has special product that covers exporter's and bank's risks which are payment default risk. Export Working Capital Loan disbursed by banks or export transaction from importer directly to exporter are being insured.
The idea to develop export credit insurance program is based on the policy that not only Sight L/C the exporters can use for international trade but also other terms and payments available with riskier aspect.
On the other hand, the export activity by small and medium enterprises (SMEs) to non-traditional market with higher risk alongside with changing atmosphere in international market from seller's market to buyer's market have made transaction in credit term become more important.
ASEI role will provide Export Credit Insurance facility for the exporters to deal with export payment risk including promoting Indonesian exporters to penetrate new international market. As for Credit Insurance/Guarantees facility for the bank to support increasing credit/loan to real sector including the exporters.
Along with the changes in business climate that highly competitive, ASEI continues to diversify and modify the products within the class of business of Export Credit Insurance, Credit Insurance/Guarantees, and General Insurance in order to support clients' business.