If the equipment or activities are not environmentally friendly or violate the regulation, we will not provide loan to the business actors.
Jakarta (ANTARA) - The Maritime Affairs and Fisheries Ministry has said that environmentally friendly business practices are an absolute requirement for obtaining capital from the Marine and Fisheries Business Capital Management Agency (LPMUKP).

"If the equipment or activities are not environmentally friendly or violate the regulation, we will not provide loan to the business actors," director of LPMUKP, Syarif Syahrial, stated in a press release issued here on Friday.

The loans aim to support the promotion of zero waste in blue economy development, he said. They are meant to empower the local marine and fisheries economy, aquaculture clusters, and tourism that protects the environment, as well as increase the added value of fishery products, he informed.

The agency is targeting to disburse Rp1.2 trillion in capital to marine and fisheries actors by the end of 2021, he added.

"LPMUKP has provided financing since November 10, 2017. Currently, it has reached Rp841.96 billion,” the director informed.

He also emphasized that the assumption of high risk in marine and fisheries business loans is wrong, saying non-performing loans currently stand at just 3 percent.

According to the data from the agency, the realization comprises Rp248.67 billion for the fishery, Rp394.9 billion for aquaculture, Rp169.85 billion for fishery products processors or marketers, Rp21.72 billion for household salt businesses, and Rp6.8 billion for other coastal business sectors.

The agency said that so far capital has been distributed to 21,215 beneficiaries -- 10,314 in fishery, 6,317 in aquaculture, 3,899 fishery products processors or marketers, 613 beneficiaries in household salt businesses, and 72 in other coastal business sectors.

Related news: Indonesia, France to build environmentally friendly fishing ports
Related news: Production packaging must be environment-friendly: WPO president

Translator: M Razi Rahman, Uyu Liman
Editor: Suharto
Copyright © ANTARA 2021