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    1Aug, 2018
    Credit infrastructure of state-owned banks in Indonesia skyrocketed
    infrastructure – illustration. Photo by pxhere

    Infrastructure projects become the backbone of state-owned banks. In the first half of 2018, infrastructure loans grew over 20% year on year (yoy).

    One of the aggressive banks that channeled infrastructure loans is Bank Negara Indonesia (BNI). Loans of Rp 107.96 trillion in the second quarter of 2018 flowed into infrastructure projects. This figure rose 22.98% from Rp 87.78 trillion in the same quarter.

    The toll road and construction sectors, as well as power plants, receive the largest credit loans of 30 percent of total infrastructure credits. The remainder, loans poured for transportation infrastructure, telecommunications, oil and gas.

    Herry Sidharta, Vice President Director of Bank BNI, said that the company still relies on the electricity, toll road and construction sectors, as well as transportation and telecommunications for infrastructure credit distribution in the second semester. To boost the infrastructure credit in 2018, the BBNI-coded bank selects projects from government initiatives included in strategic projects as well as the private sector with measurable risk prospects.

    Not to be outdone, Bank Mandiri’s infrastructure loan disbursement reached Rp 165.8 trillion, or grew 24.1% in the first half of 2018 compared to the same period the previous year. The transportation sector is the largest recipient of credit with a value of Rp 39.3 trillion.

    Then electricity sector Rp 36.8 trillion, and oil and gas and renewable energy Rp 24.1 trillion. Dikdik Yustandi, Senior Executive Vice President of Bank Mandiri, said that infrastructure is the main pillar of corporate credit. The proof is that corporate loans grew 23.2 percent to Rp 300.1 trillion until June 2018. Bank Mandiri predicts that corporate loans will grow 15 percent by the end of the year.

    Most recently, Bank Mandiri provided a syndicated loan of Rp 2.10 trillion for the construction of the Jakarta-Cikampek II toll road segment elevated along 38.6 km.

    Taswin Zakaria, President Director of Maybank Indonesia, said that the need for substantial infrastructure funding can not be fully owned by state-owned banks. That’s where private banks play a role. “Currently more than 20% of our corporate loan portfolio is infrastructure credit,” said Taswin.

    As for Jan Hendra, Corporate Secretary of Bank Central Asia (BCA) said that infrastructure loans are still dominated by toll roads and electricity.

    (source: Kontan)

    31Jul, 2018
    PLN signs deal to expand electricity in two provinces in Papua

    State-owned electricity company PLN has signed a cooperation agreement with a number of institutions to improve the electricity system through the “Papua Terang” program in Papua and West Papua provinces.

    The institutions are the Indonesian Military and the National Institute of Aeronautics and Space (Lapan) as well as five higher educational institutions – the University of Indonesia, Bandung Institute of Technology, Gajah Mada University, the Sepuluh Nopember Institute of Technology and Cenderawasih University.

    “With the cooperation agreement signed last Friday, PLN aims to provide electricity to 99 percent of villages in the two provinces in 2019,” PLN says in a statement at pln.co.id, adding that to date, PLN had electrified 30.39 percent out of the 4,535 villages in the two provinces.

    The statement says the company plans to electrify 1,200 more villages this year.

    After the signing ceremony, PLN also deployed 500 members of an expedition team under the name of “Ekspedisi Papua Terang.” The team members consisted of student volunteers, PLN, the Indonesian Military and Lapan.

    (read more: The Jakarta Post)