State banks urged to ignite real sector
State banks urged to ignite real sector
Rendi A. Witular, The Jakarta Post, Jakarta
The government, relying on the role of state banks to help speed
up economic growth, has asked four large state banks to focus
their lending on small and medium enterprises, infrastructure
projects, farming and fisheries.
Coordinating Minister for the Economy Aburizal Bakrie said
after a Cabinet meeting on Tuesday that the four banks -- Bank
Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI)
and Bank Tabungan Negara (BTN) -- could contribute up to 40
percent of this year's loans.
"President Susilo Bambang Yudhoyono hoped that this year
alone, the domestic banking sector could extend at least Rp 106
trillion in credit, 40 percent of which should be from those four
state banks," said Aburizal.
He also said that domestic banks have the ability to fund some
20 percent of the total funding needed in each sector. "We hope
that for the next five years, the banking sector will provide at
least Rp 500 trillion in new loans," Aburizal added.
For instance, from the massive US$140 billion needed for
infrastructure projects planned for the next five years, Aburizal
said that the country's banking sector could contribute some Rp
200 trillion ($21.6 billion).
Aburizal's remarks came at a time when most banks are
currently focusing on consumer loans, and, to some extent,
staying away from the corporations due to perceived high risks.
Elsewhere, on microcredit lending, Aburizal said the four
state-owned banks should lower their interest to an average of 12
percent from the nearly 15 percent interest at present.
Meanwhile, Bank Indonesia's governor Burhanuddin Abdullah said
that the central bank would try to guide inflation down to 3
percent over the next three years in order for banks to be able
to keep their microcredit loan interest at 9 percent.
Aburizal added that the government would start identifying
productive small and medium enterprises eligible for low-interest
loans next week.