International Islamic Trade Finance Corporation (ITFC), a member of IDB Group, has signed a cooperation agreement on Sharia Joint Trade Financing in Indonesia with the Danamon Syariah, the sharia business unit of PT Danamon Indonesia in Jakarta on 22 January 2015. The main objective of this collaboration is to grow sharia trade financing, stimulate and fasten the growth of sharia productive financing, and to synergize both entities’ strengths. The agreement was signed in Jakarta by Eng. Hani Salem Sonbol, Deputy CEO of ITFC, Henry Ho, Danamon President Director and Danamon Syariah Director, Herry Hykmanto.

Eng. Hani Salem Sonbol said, “We are pleased to work with Danamon in this collaboration and align with the right and active trade finance partner; this partnership is a milestone to boost the growth of Sharia Trade Finance in Indonesia.” With its expertise on trade and commodity financing, Danamon had proven its commitment to support the growth of the Trade Finance industry in Indonesia. As for ITFC, the agreement was in line with its core mandate to provide trade financing and facilitating intra-trade among member countries and with the rest of the world, he added.

Henry Ho, Danamon President Director said, “As a leading Trade Finance Bank in Indonesia, we are delighted to work with ITFC in this collaboration. This is the first time ITFC collaborates in Sharia Joint Trade Financing with an Indonesian bank, and it is with great pride that Danamon was appointed by ITFC as its agent to arrange the financing to customers as well as provide trade finance services and trade collateral management. We believe that this collaboration with ITFC will serve as a long term support to advance Sharia Trade Finance in Indonesia.” He confirmed that the agreement was in line with Danamon’s mission, to be a customer-centric organization, serving all segments by offering unique value, based on sales and service excellence.

This cooperation was aimed to achieve US$ 1 billion in the first five years, starting with USD 200 million in 2015. As both parties agreed to synergize their capabilities and resources to search opportunities for joint trade financing cooperation in Indonesia based on sharia principles, the joint financing would enable Danamon’s corporate and commercial customers to get better trade finance services, with more competitive pricing.