OJK Wants More Money Pumped Into Fisheries, Maritime Sector

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The Financial Services Authority (OJK) is hoping to see more funds channeled to the maritime and fisheries sector this year as the regulator and the financial industry gear up to finance a raft of projects.

Speaking on Monday, OJK deputy commissioner for banking supervision Irwan Lubis said the agency was optimistic that domestic banks would be able to jack up current outstanding loans by more than half in 2015, supported by a new program that it had recently mapped out.

“We hope, by the end of this year, that outstanding loans will climb 67 percent year-on-year, but this target is specifically for activities in the micro, small and medium sector,” he said in a press conference.

The double-digit target will bring outstanding loans to more than Rp 29 trillion.

Last year, the figure stood at Rp 17.6 trillion (US$1.35 billion), according to banking statistics published by the OJK. Most of the credit was channeled to areas across Java in the form of working capital loans.

Within the overall lending portfolio reported by the banking industry, fisheries- and maritime-related loans accounted for only 0.5 percent of the total in 2014.

“We need to spur higher disbursement for fisheries and maritime activities, especially in the eastern part of Indonesia where they play the largest part in people’s daily activities,” Irwan said.

He added that a number of lenders had laid out in detail their upcoming activities in the fisheries and maritime sector within their business banking plans, which contain more than Rp 11 trillion worth of projects.

Some lenders will also participate in the launch of the OJK’s Jaring program aimed at providing financing to fisheries- and maritime-related businesses. The program will be initiated in Makassar, South Sulawesi, on May 11.

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