The Indonesian Export Financing Agency (LPEI) has projected growing demand for export failure insurance products amid rising global geopolitical tensions that are affecting the stability and certainty of international trade for Indonesian exporters.
Spokespeople from LPEI said that trade credit insurance makes up 90% of insurance in the country.
The growth potential for export failure insurance is expected to rise as international trade transactions increasingly shift from Letters of Credit (LC) to Telegraphic Transfers (TT). Unlike LC arrangements, TT transactions do not involve an automatic guarantor, making them more vulnerable to payment and trade risks.
In response, LPEI plans to strengthen trade credit insurance and marine cargo insurance as key pillars of its future insurance strategy, aiming to provide greater protection and confidence for exporters.
In 2025, LPEI recorded insurance volume totaling IDR8.8tn ($540m) while underwriting reached IDR4.9tn, supporting an 8% increase in net profit to IDR252bn.