Fri, 08 Apr 2011

Medan, N Sumatra (ANTARA News) - State-owned Bank BNI has since 2008 prepared itself to support the government`s efforts to advance the national economy by allocating Rp30 trillion for the infrastructure sector, its president director said.

"In the short-term, BNI focuses its support priority on infrastructure (transportation, electricity and telecommunications). But the funds amounting to Rp10 trillion for each sector have not yet been all absorbed until this month, though they have been prepared since 2008," BNI President Director Gatot M Sowondo, said here on Thursday.

He said that there were many factors causing the funds not to be disbursed, among others, the investors were not yet ready due to the fact that the government regulation on the sector was not yet enough.

In the meantime, BNI should also continue maintaining its prudent principles in channeling credits.

"But thanks God, we hope, in near future state-owned railway firm PT Kreta Api Indonesia (PT KAI) will absorb about Rp2 trillion of the funds," he said.

PT KAI will use the funds to procure locomotives, cargo coaches and passengers carriers.

He said that for the transportation sector, credits will cover air transportation (airports), land (roads and tollroads) and sea transportation (seaports).

The infrastructures are expected to smooth goods and services distribution and passenger traffic as well as increase efficiency and cut production costs.

He said that BNI credits continued to increase despite the management had kept on carrying out banking prudence.

Last year for example, its credit provision was raised by 13 percent to Rp136 trillion. This year funding is expected to increase 17 percent so that loan to deposit ratio could reach 75 percent from 70.2 percent a year ago.