Mining Credit Growth is Predicted to Continue Until the End of 2022
5/28/2022
The LPPI sees that the credit disbursed by banks to the mining sector will continue to grow in the future
Senior Faculty of the Indonesian Banking Development Institute (LPPI) Amin Nurdin estimates credit extended by banks to the mining sector will continue to grow in the future, in line with the high demand for credit in this sector.
Senior Faculty of the Indonesian Banking Development Institute (LPPI) Amin Nurdin estimates credit extended by banks to the mining sector will continue to grow in the future, in line with the high demand for credit in this sector.
Credit demand in mining occurs in the supply chain from upstream to downstream. "So in general, the economic value is quite large," said Amin, Friday (27/5).
As an illustration, said Amin, investment credit for heavy equipment related to mining will continue to increase. Then, financing for the transportation of mining products is also a potential source of financing.
Working capital credit for mining is also a source of financing, considering that the mining business is a large and expensive business.
“The company's operations are also quite high. This means that overall demand for the mining sector is still quite large, in 2022," Amin said.
As for the external side, the conflict between Russia and Ukraine and the slowing down of the Covid-19 pandemic has also become the driving force for increasing the demand for mining products, which in turn increases the demand for credit.
Previously, credit disbursement to the mining and quarrying sector grew the highest compared to other business sectors in April 2022. Based on BI data as of April, the distribution of working capital credit for mining and quarrying increased 67.2 percent yoy, to Rp 83 trillion and credit for the mining sector rose 42.6 percent yoy to Rp90.8 trillion.
