BRI to give Rp 3.793 trillion worth of agribusiness loans this year

Tue, 11/15/2011 - 17:05

Bank Rakyat Indonesia (BRI), a major national bank, has recorded to offer Rp 2.571 trillion worth of loans under the Bioenergy and Plantation Revitalization Loan scheme (KPEN-RP) until the end of September 2011.

"We have prepared up to Rp 12 trillion worth of fund to continue the program until 2014, allocating them for three commodities that includes CPO, rubber and cocoa," said BRI Agribusiness Division Representative Fardhan Handoko during Plantation Revitalization Seminar at the Indonesian Chambers of Commerce and Industry, Tuesday, November 15th. 

The biggest investment loans for 2011, he added, was given to the palm oil sector with Rp 2.286 trillion worth of fund for 26,144 recipients, managing 56.252 hectares of lands.

Investment loan for rubber industry came second with Rp 250 billion worth of loans for 3,399 recipients at 6,903 hectares of plantation areas, leaving the remaining Rp 35 billion for 1,059 cocoa farmers with 1,423 hectares of managed areas.

"The loan realization until September has reached about 90 percent of the total allocated fund for the project, reaching a total Rp 3.793 trillion until the end of this year," he said.

Farhan stated that the taking up of BRI's investment loans are hindered by technical problems, ranging from the absence of legal operating permits, the overlapping of location permits, and the many unresolved land concession issues.   

Companies' reluctance to deal with the related bureaucracy, administrations and additional costs during the process of proposing for loans has also said to become an obstacle in realizing the program.

"The condition would be different if the government could speed up the land certification process for transmigration areas, through the omitting or the excluding of costs for certifications of lands under the nucleus smallholder scheme," he said. (fir)

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