Development of Indonesia’s
banking sector performance by end of first Semester this year had been quite
impressive. One of the criteria was credit growth which was projected to grow in
the range of 26% - 28%. This projected was a reflection of credit stability
which was posted at 25% last year.
Not less noteworthy was pipelining of credit investment
in the banking sector up to May 2012 last which managed to grow by 19.45% to
become Rp 508.76 trillion against same period of 2011.
Data of Bank Indonesia had it that growth of credit
investment in the infra structure sector had reached 30.9% or above that of the
average growth in the industrial sector. There were three economic sectors which
offered greatest credit investment.
The electricity, gas and water sectors were the economic
sectors with highest credit investment growth, i.e. 47.9 % to become Rp 38.41
trillion till May 2012 against Rp 25.97 trillion in May 2011.
Meanwhile investment credit for the construction sector
rose by 23.23% to become Rp 20.32 trillion against the previous Rp 16.49
trillion. Lately, credit investment to the transportation and communication
sector rose by 21.57% to become Rp 62.66 trillion against the previous Rp 51.54
trillion. The means that the average credit growth of the three sectors reached
30,9%.
Beyond infra structure, pipelining of investment credit
to the sectors of trading, hotel, and restaurant booked increase above the
average of industry, i.e. 44,04% (year-on-year) to become Rp 88,27 trillion
till May 2012. The sectors of mining and excavation also grew high, i.e. 36,98%
(year-on-year) to become Rp 36.3 trillion.
It was noteworthy that investment financing to the
infra-structure sector: electricity, construction were expected to serve as
stimulus of better economic growth. Some upper level banks had been actively
involved in credit pipelining to the infra-structure sector.
Evidently Bank Mandiri, Bank Negara Indonesia (BNI), Bank
Rakyat Indonesia (BRI) and Bank Central Asia (BCA) served as joint Mandated
Lead Arranger for financing syndication for PT Jasamarga Bali Toll worth Rp
1,74 trillion. In this case Bank Tabungan Negara (BTN) and Bali Regional
Development Bank became member of the syndicate.
Jasamarga Bali would use the fund for development of 10
kilometer long Nusa Dua-Ngurah Rai Benoa toll road section. Bank Mandiri with
BNI and BRI jointly extended credit of Rp 455 billion each for that project,
BCA contributed Rp 200 billion, BTN 104.3 billion and BPD Bali ectended Rp 100
billions.
Until May 2012 Bank Mandiri’s financing for the infra
structure sector reached Rp 29,96 trillion, up by 28,6% against same period of
previous year at Rp 23.39 trillion. The portion for toll road financing was
posted at 35,58% or Rp 28.6 trillion, growing by 6.4% against May 2011 which
was Rp 20,02 trillion.
Still related to basic infra-structure, it was known that
the Central Java Regional Development Bank (Bank Jateng) and BPD Bali had
allocated fund of Rp 300 billion for developing Regional Drinking Water Company
(PDAM). With additional fund from the two BPD toral bank credit for PDAM this
year came to Rp 4.5 trillion.
Value wise, the group of private banks dominated credit
pipelining. The portion of credit investment of private banks was posted at
55.54% or Rp 282,56 trillion. Company Bank (persero) was in second place the
portion being 28.42% or Rp 144,61 trillion.
In terms of growth level, the group of foreign banks and
joint venture banks booked highest growth of 42.32% (year on year) to the level
of Rp 56.46 trillion although by portion they were only in third place. The
private banks were in second place with growth of 31.15% (year on year).
It was regrettable that commitment of the banking sector
in extending credit to the infra-structure sector in extending credit to the
infra-structure sector was not accompanied by maximum liquidating process. All
in all, low absorption of the infra-structure sector was the very obstacle that
stagnated pipelining of credit to that sector.
The reason was because in the execution of the multiyears
project, the credit extended was not totally drawn by the debtor. Until April
2012, the value of undisbursed loan reached Rp 719,5 trillion. Of that amount around
Rp 272,79 trillion was bank’s committed credit while Rp 447.222 trillion was
uncommitted loan.
The banks predicted that this year’s undisbursed loan
would be liquidated, provided that Government’s infra structure programs run as
planned. The slow process of credit pipelining was not on account of bank’s
reluctance but because the debtors were still facing evectional problems such
as hard land clearing (usually caused by land dispute and difference in buying price)
or slow and complicated bureaucracy in the regions.
Therefore the Government as facilitator and regulator
must instantly solve the problem faced by investors at the infra structure
project so credit liquidation would be more and application for credit would
increase.
Amidst uncertainty of the word’s economy today it was
best for the Government and Indonesian banking sector to focus on
infrastructure building to anticipate any possible recovery that might happen
in the next two year. By the time the world’s economy recovers, the economic
machine would be ready to roll thanks to adequate infra-structure.
Business News, Wednesday, July 18, 2012
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