Bank Mandiri increases credits for rubber plantations

Bank Mandiri increases credits for rubber plantations

Bank Mandiri. (ANTARANews.com)

Jakarta (ANTARA News) - State lender PT Bank Mandiri increased credits for rubber plantation and rubber processing industry to Rp7.3 trillion in the first half of this year from Rp6.9 trillion in the same period last year.

Commercial and Business Banking Director of the publicly traded bank Sunarso said he is optimistic rubber industry would revive with the improvement of the performance of automotive industry in the United States and Asia.

In addition implementation of export retail policy by worlds three natural rubber largest producers -- Thailand, Indonesia and Malaysia -- would help sustain rubber market, Sunarso said.

"We have created synergy with business players in the rubber sector that we hope the national rubber industry could continue to expand," he said in a press statement here on Sunday.

Credit commitments of Bank Mandiri for rubber industry reached almost 10 percent of its total credit commitments of Rp88.6 trillion in the plantation sector by June 2014.

Sunarso said improvement in the peoples welfare would push up demand for automotive products that would proportionally result in an increase in demand for rubber such as basic material for tires.

Based on statistics of the Federation of Rubber Companies (Gapkindo), the worlds rubber consumption of natural rubber reached 11.3 million tons in 2013 and the requirement is predicted to rise to 11.8 million tons in 2014.

Indonesia, which is the worlds second largest producer, is forecast to produce 3.205 million tons of the commodity in 2014.

In order to maintain the quality of financing in the plantation sector in general, the countrys largest bank in asset, will continue to observe a number of aspects such as technical, legal , financial, and management aspects, Sunarso said.

Bank Mandiri will also continue to consider opening access for small plantation sector to finance to accelerate growth of small rubber industries.

Sunarso said small plantations account for 85 percent of the countrys rubber production, therefore, they deserve financial support from banks.

"We are confident that Indonesias natural rubber industry would continue to grow with the growing demand for the commodity," he said.

(SYS/H-ASG/A014)

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