BRI rides on biofuel frenzy, Rp13 trillion loan
State-owned bank PT Bank Rakyat Indonesia (BRI) Tbk claimed it has disbursed Rp6 trillion of new loans to support government's ambitious biofuel plan, Antara reported.
BRI director Sulaiman Arief Arianto said the bank has allocated up to Rp13 trillion loan to support the program this year, most of which goes to plantation activities.
No details available, especially in relation with government's earlier plan to give interest rate subsidy for biofuel-related investments. Some companies have launched various initiatives to develop biofuel. But only few have bold plans.
"A major palm oil plantation company, for example, decides to enter the business with bioethanol which may take 10 years to harvest while it could produce biodiesel using crude palm oil as raw material," a businessman involved in the biofuel said.
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BRI director Sulaiman Arief Arianto said the bank has allocated up to Rp13 trillion loan to support the program this year, most of which goes to plantation activities.
No details available, especially in relation with government's earlier plan to give interest rate subsidy for biofuel-related investments. Some companies have launched various initiatives to develop biofuel. But only few have bold plans.
"A major palm oil plantation company, for example, decides to enter the business with bioethanol which may take 10 years to harvest while it could produce biodiesel using crude palm oil as raw material," a businessman involved in the biofuel said.
Labels: Biodiesel
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posted by yosef at 4:06 AM
2 Comments:
Good news for Indonesia. The Indonesian government will be able to cut its crude oil dependency. Hopefully, the Palm Oil and Diesel (biodiesel) ratio will keep on increasing from the current 10:90 (known as B10.)
Is this really such good news?
US car makers are scrapping Biofuel projects in US...
Using March 2006 figures in BRI newsletter distributed in BRI AGM on May 30th 2006;
13Rp (6Rp) trillion loan would amount to 17% (7.8%) of all loans outstanding and 86.5% (39.9%) of NAV.
Was this loan disbursed due to government political pressure of sound macroeconomic reasons? Remember that almost entire Board of Directors was replaced at the AGM. The Indonesian government controls personnel and investment decisions of Bank Rakyat. How does the investment in biofuels figure in a bank well known for its sky high NIM entirely due to its positioning of business within the rural sector?
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