National Banks Offer Credits Worth Rp7 Trillion for Fishermen

Jakarta, June 19 (Antara) - Eight banks and non-banking financial institutions have expressed commitment to provide credits worth Rp7 trillion for fishermen this year, according to the Ministry of Marine Affairs and Fisheries (KKP). "Seven national banks, one regional government bank, and non-banking financial institutions have allocated Rp7 trillion in credits for the fishermen for 2015," Director General of Processing and Marketing of Fishery Products of the KKP Saut Hutagalung stated here on Thursday. Hutagalung noted that the amount of available funds could actually exceed the committed value. His office is also trying to obtain funds through the People's Business Credit (KUR) scheme. The Financial Service Authority (OJK) supports the sustainability of the fishery sector as one of the pillars of the Ministry of KKP now. "For this purpose, the Ministry of KKP is also giving priority to modernize fishing equipment in an effort to maintain the sustainability of the fisheries sector, particularly with regard to the KKP Minister's Regulation No. 2 of 2015," the director general remarked. Based on OJK's data, the amount of financing support from the financial institutions for the KKP sector in 2014 stood at Rp17.95 trillion, or only accounted to 0.49 percent of the total national financing worth Rp3.6 thousand trillion. The maritime sector in general, including the shipping industry, dockyard, and cargo industry, received financing support amounting to Rp85 trillion. The performance of credits in the marine and fisheries sector showed a positive trend as indicated in the non-performing loan (NPL) data from 2012 to 2013, which revealed an NPL below 4.5 percent. It further dropped to 2.81 percent in 2014.