Bank Indonesia says bank loans to shipping sector 'still low'

Jakarta (ANTARA News) - Domestic banks' loans exposure to the local shipping industry remains low and needs to increase in order to help the sector develop, a Bank Indonesia (BI) official said.

"Bank loans to the shipping industry have been relatively small, standing at 6.72 trln rupiah as of end March, or about 0.8 pct of total bank loans," BI's division head for bank regulation and research, Made Sadguna, was quoted by XFN Asia as telling a seminar.

He said those loans satisfied only about 19.5 pct of the amount the shipping industry estimates it needs.

Separately, Bank Mandiri director Sentot Sentausa said the bank aims to raise its loans exposure to the domestic shipping industry to 2 trln rupiah this year, up from 700 bln last year.