Jakarta. The Indonesian Export Financing Agency (LPEI), also known as the Indonesia Eximbank, is helping the country's businesses to sell organic products abroad, including to Europe and the US.

As a case in point, the LPEI has helped PT Mega Inovasi Organik (MIO) to export its goods. MIO has now exported its products to Europe, the US, and Asia.

“I believe that organic products will take over [the market] in the next 20 years. The world is shifting towards organic products,” MIO’s founder and director Dippos Naloanro was quoted as saying in a recent press statement.

According to Anro, MIO is now working with over 2,500 farmers from Sumatra, Java, Bali, and East Nusa Tenggara to produce various organic products in one farm, ranging from coconut sugar, organic fruit, and spices, to rice. They also grow herbs and spices like pandan leaves, vanilla, and ginger, to name a few. Anro said that farmers who had partnered with MIO reported an increase in income by 30-40 percent.

“By having this integrated concept, farmers usually manage land with 4 types of organic products. "I once roughly calculated that if a farmer had 3,000 square meters of land planted with various organic products, he could earn an income of Rp 80-90 million per year," Anro said.

There are also tons of organic products that are in huge demand in Europe. Anro claimed that the Germans were into the endemic spice plant of Andaliman. Anro added: cubeb has a niche market share in Europe. Some people process it to make a drink mixture or spice mixture to prepare meat dishes for a richer taste.”

Anro also thanked the Indonesia EximBank for helping Indonesian organic products penetrate the global market.

“LPEI plays a role in supporting exporters like me. They are quick to provide financial facilities to us [exporters]. Hopefully, we can increase this partnership by having the Indonesia EximBank establish some sort of community for ‘foreign exchange’ [exporting] farmers so they can further increase their production and produce quality,” Anro said.

LPEI’s head for trade finance and financing Berlianto Wibowo said that the agency focused on supporting export-oriented businesses through what it calls the Special Export Assignment (PKE) initiative.

"This PKE program provides financing, guarantee and insurance facilities for transactions or projects that may be difficult to implement commercially, but are considered important by the government to support national export policies or programs," Berlianto said.

As of April 2024, LPEI has disbursed PKE facilities of up to Rp 15.2 trillion to a total of more than 90 export destination countries. LPEI also has a PKE facility for small and medium enterprises (SMEs), and this program has distributed up to Rp 1,023 billion until April.