Bank Mandiri sees increasing loan from CPO sector

Jakarta (Antara News) - PT Bank Mandiri expects loan demand from the oil palm plantation and crude palm oil (CPO) sector to continue to increase in line with the government`s commitment to stimulate development of biodiesel fuel in the country, a bank official said.

"We expect corporate loans from this sector will increase this year and in the coming years because CPO can now be used for biofuel," Bank Mandiri director Abdul Rahman was quoted by XFN-Asia as saying.

As of the end of March this year, he said total loans to this sector stood at 8 trln rupiah out of the bank`s total outstanding loans of approximately 100 trln rupiah.

"We expect increasing loan demand to build biofuel plants as the government has declared its commitment to encourage development of bio energy in this country," he said. (*)
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