OJK Sets Food Loan Disbursement at Rp255tn
16 February 2015 13:06 WIB
TEMPO.CO, Jakarta – The Financial Services Authority (OJK) is targeting this year's loan disbursed to the food sector to reach Rp255 trillion, a 20.3 percent increase from last year. In 2014, credit disbursement to the food sector amounted to Rp212 trillion, accounting for just 5.8 percent of the national banking industry's total disbursed loans.
The OJK noted the ratio of non-performing loans (NPLs) in the food sector continues to go down, always below the average NPL of the economic sectors as a whole. However, there are some sub-sectors that need extra monitoring, said OJK commissioner Muliaman Hadad, such as the livestock business whose NPL ratio stood at 4.3 percent last year, above the 2.28 percent NPL average.
Efforts to boost farmers' credits have been conveyed by Franky Widhaha, the Indonesian Chamber of Commerce and Industry (Kadin)'s deputy chairman for agribusiness and food. According to Franky, the Kadin is seeking to make several breakthroughs to help farmers enjoy reasonable lending rates and insurance premiums.
The breakthroughs, Franky said, are expected to free Indonesia from its reliance on imported food, which has been increasing in volume each year.
DEVY ERNIS
