Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Infrastructure  >>   Indo banks need to focus on infrastructure
NEWS UPDATES Asean Affairs         4  July 2011

Indo banks need to focus on infrastructure

Related Stories

June 13, 2011
Infrastructure Push Could Strip Indonesia

June 13, 2011
Infrastructure Push Could Strip Indonesia

June 10, 2011
Nomura bullish on Indonesia

June 9, 2011
Report looks at Indonesia's poor health

June 8, 2011
Indonesia's competitiveness rises

Indonesian business leaders have urged the central bank and the government to change some guidelines that were set during the financial crisis 13 years ago and allow banks to provide large loans for infrastructure projects.

“We are concerned that banks have not been in line with development in the real sector” of infrastructure, Erwin Aksa, chairman of Indonesian Young Entrepreneurs Association (Hipmi), said on Sunday.

Banks have been reluctant to loan for infrastructure projects, which require large amounts of capital, on concerns they may have problems with land acquisition and late repayments. Loans for infrastructure projects accounted for 13 percent, or Rp 33.2 trillion ($3.88 billion), of total loans of Rp 246 trillion in 2010 at Bank Mandiri, the country’s largest bank by assets.

This year, the bank forecasts disbursing Rp 20 trillion in loans for infrastructure, while its total outstanding lending may grow by 20 percent, its president director, Zulkifli Zaini, said in April.

Total bank loans for the infrastructure sector in February were 4.6 percent, or Rp 81 trillion, of Rp 1,773.9 trillion in all loans outstanding, Antara news agency reported, citing Bank Indonesia data.

However, the data also showed that the disbursement of loans for infrastructure was lower than loans committed because some projects had been halted due to land-purchase issues. In 2010, infrastructure loan agreements reached Rp 39.80 trillion, but only Rp 20.78 trillion was disbursed.

Jongkie Sugiarto, president director of Hyundai and deputy chairman of the Indonesian Automotive Industries Association (Gaikindo), said banks needed to focus more on infrastructure instead of just concentrating on consumer financing for items like cars or motorcycles. “How can people use their cars if there is no more space for roads?” he said.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    4  July  2011 Subsribe Now !
• Cambodia gets first international cinema Subcribe: Asean Affairs Global Magazine
• Indo banks need to focus on infrastructure Asean Affairs Premium
• South Korean firms look at Indonesia
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Malaysian government offers site for rally
• Philippines may relax construction ownership rules
• Pheu Thai carries Thailand
• Democrats hold Bangkok
• Military to stay out of Thai politics p

Asean Analysis    4  July  2011

Advertise Your Brand
• The morning after Sponsor Our Events

Asean Stock Watch    July  2011 

• Asean Stock Watch-June 4 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand