Berita

The national banking role in the mining sector is still relatively small compared with other industrial sector. Even though oil and gas financing is relatively secure, the national banking has played an insignificant role in this sector.

Oil and gas activities have been receiving funding from national banks and foreign financial firms. To further increase this cooperation, BP Migas have opened an intensive dialogue with national banking sector, because they believe that oil and gas activity is relatively secure, particularly low risk fields and Working Areas which have received a Plan Of Development.

According to Suhaedi, Bank Indonesia’s chief researcher, this limited funding is due to the lack of knowledge on the part of the banks towards the opportunities, prospects and risks of the mining sector. Suhaedi further added that mining is a long term investment meanwhile most bank funding is on short term conditions, with the potential for a liquidity mismatch.

According Bank Indonesia’s recapitulation data, credits in the mining sector accounts for only 2,44% of the total credits in the banking industry. Until the second quarter of 2009, credits in the mining sector have suffered a decline. In September, this trend steadily increased, reaching a total of 4,99% from September 2008’s position.

As of September 2009, the total number of undisbursed loan dropped by 6,87% compared with September 2008, with a lower NPL ratio of 1,75% from 2,2%.

BP Migas, on behalf of the government, have issued several policies to increase the role of the national banking sector, by obligating the service of banks within the jurisdiction of the Republic of Indonesia. By issuing this policy, all those who are bound within the contract are obligated to open an account in an Indonesian bank, both as a method of payment and as the recipient.

Up until October 2009, national banking role in the sector have reached US$ 3,210,184,827.16 which consists of Bank Mandiri (US$ 2,079,339,281.79), Mandiri/BNI (US$ 429,980,000.00), BNI (US$ 398,967,919.20), BRI (US$ 48,881,339.73), and Bank Syariah Mandiri (US$ 291,308,216.05).