The International Islamic Trade Finance Corporation (ITFC), an entity of the Islamic Development Bank (IDB) Group, signed two Memorandum of Understandings (MoUs) with Indonesia during a signing ceremony on 19 May 2016 during the IDB Group’s 41st Annual in Jakarta.
The first MoU was signed by Mr. Irfan Anwar, Chairman Coffee Association Indonesia, Mr. Armia Ahmed, Chairman Association of Indonesian Coffee Exporters and Industries and Eng. Hani Salem Sonbol in favor of AICE Sumut (North Sumatra) and AICE Aceh for the cooperation on Coffee Exports Financing. This MoU will provide means and ways for cooperation between the two entities in providing warehouse financing for coffee exports. In addition, it will also explore the possibility of jointly designing and implementing trade development and promotion, and capacity building activities for the coffee sector. The financing will allow Coffee Cooperatives and SMEs in Aceh and Medan in Indonesia to increase their exports to global markets.
The second MoU was signed by Mr. Badruz zaman, Director of Development, PT Asuransi Asei Indonesia, the state owned insurer. This MoU will facilitate the provision of insurance products and services such as export and domestic credit insurance, credit guarantees and general insurance.
ITFC’s financing for the coffee sector will help the farmers to get a better price for their coffee, because financing charges that the exporters incur is much lower with ITFC’s intervention; moreover it will help fuel the growth of the exporters and the co-ops.
Commenting on the signing, Eng. Hani Sonbol, CEO of ITFC said “Through financing this strategic commodity, we are certain that thousands of farmers are benefiting from ITFC’s Financing. ITFC’s core mandate is provide financing with the aim of enhancing the socio-economic welfare of the farmers in the best possible way”
Mr. Irfan Anwar, Chairman Coffee Association Indonesia said, “We thank ITFC and IDB Group for supporting the Association, and signing the agreement with us. With this cooperation, we can support each other to increase the yield for the farmers; we can also increase the farmers knowledge and how they manage their own plantation.”
Mr. Badruzzaman, Director of Development, PT Asuransi Asei Indonesia, extended his thanks to ITFC and added, “It is an important moment and pleasure to sign this agreement with ITFC. We are looking forward to support ITFC’s financing in Indonesia through our facility of insurance products.”