• Self-employed Entrepreneur, Stagnant Logistic Credit

    JAKARTA – The lending of the logistics sector tends to stagnate during the first half of 2017.

    Indonesian Banking Statistics released by the Financial Services Authority (OJK) showed that from January to June, credit distribution grew by 3.9%.

    However, in the 6 months of the disbursement up and down. The highest distribution was recorded in May at Rp177 billion, but decreased in June to Rp174 billion.

    Chairman of the Indonesian Logistics and Forwarders Association (ALFI) Yukki Nugrahawan Hanafi said business operators in the logistics sector still refrain from applying for loans to banks.

    “For this year, business actors optimize existing ones and make operational and efficiency improvements,” he told Bisnis on Sunday (08/20/2017).

    He added that logistics and transport agents also tend to seek outside bank financing through partnerships or cooperation with national or foreign parties. “B to B [bussiness to bussiness] cooperation pattern.”

    One reason why business actors refrain from applying for working capital loans to banks is that interest rates are still high. Based on OJK data, the average loan interest rate for the logistics sector is 10.65%.

    ———–
    Sources: http://industri.bisnis.com
    Translated by Aryaputra Pande

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