Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
State-owned Bank Mandiri, the nation's largest bank in terms
\nof assets, estimates that lending may grow by at least 20 percent
\nnext year on the back of rising business confidence and improving
\nsecurity and political conditions.<\/p>\n
Mandiri president director E.C.W. Neloe said the lending
\ngrowth next year might exceed the bank's forecast, following the
\ngovernment's requests to the banking sector to help channel loans
\nto finance massive infrastructure projects at home.<\/p>\n
\"Mandiri has targeted lending to grow by at least 20 percent
\nnext year. The lending may increase further if the government is
\nserious in speeding up the construction of infrastructure to
\nsupport the business community,\" said Neloe after a public
\nbriefing to investors and media on Friday.<\/p>\n
The bank's 20 percent lending growth may equal some Rp 18
\ntrillion (about US$2 billion), since the bank has previously said
\nits lending this year might grow by at about 20 percent.<\/p>\n
In the first nine months ending September this year, the bank
\nhas channeled some Rp 12 trillion in loans. The bank's
\nconsolidated lending as of September stands at Rp 87.03 trillion
\ncompared to Rp 75.9 trillion in December last year.<\/p>\n
Vice president Jusuf Kalla has previously said the government
\nwould form a consortium, consisting of state-owned banks, to help
\nchannel loans to finance the construction of 1,500-kilometer toll
\nroads that would link Merak in Banten with Banyuwangi in East
\nJava.<\/p>\n
The government is expected to construct some 300 kilometers of
\ntoll roads per year, with an annual investment as high as Rp 30
\ntrillion.<\/p>\n
\"Mandiri is ready to help meet the government's request in
\nassisting with funding for the project. However, there should be
\na comprehensive study over the feasibility of the projects
\noffered to local banks,\" said Neloe.<\/p>\n
Elsewhere, regarding the bank's non-performing loans with
\nseveral ailing companies, Mandiri corporate banking director
\nSoleh Tasripan said there has been progress in efforts to recover
\nthe loans.<\/p>\n
Soleh said the bank would sign a restructuring agreement with
\ntroubled pulp and paper producer PT Kiani Kertas this month, as
\nthe firm's new investor, Singapore-registered Novela
\nInternational, had injected $50 million in working capital into
\nthe firm to improve its business operation.<\/p>\n
The capital is needed to help revive Kiani's business so that
\nit can pay its debts to Mandiri, amounting to about $201 million.<\/p>\n
Tasripan said the restructuring agreement would also include
\nan extension to seven years for Kiani to settle its debts to
\nMandiri.<\/p>\n
\"Normally restructuring takes about five years. But we have
\nproposed to the central bank for a possible extension to up to
\nseven years,\" said Soleh.<\/p>\n
Due primarily to Kiani's bad loans, Mandiri's gross non-
\nperforming loans (NPL) ratio remains high at 7.2 percent as of
\nSeptember this year, compared to the central bank's 5 percent
\nlimit.<\/p>\n
Soleh also said that the bank was expecting to recoup some of
\nits money this year from ailing retailer Pasaraya as the company
\nmanaged to sell its building in Manggarai, Central Jakarta, for
\nabout Rp 160 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/brendi-a-witularb-the-jakarta-postjakarta-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}