Mining Companies Urge Lower Interest Rate

VIVAnews - Indonesia Coal Mining Association (APBI) requested the national banking to immediately lower the loan interest after the wide gap between credit interest and Bank Indonesia interest rate.

The executive director of APBI Supriyatna Sahala said that most of the large-scale coal mining companies which are included on the first to third generation contract have been using foreign banking funding with lower interest rate. While, the mining companies at present time that operate in Indonesia must use the national banking.

"The national banking is still use 14-15 percent interest rate. While BI Rate has been lowered to 7.5 percent," said Sahala through a telephone call on Tuesday, April 7.

Nevertheless, he said some of the coal mining companies have been using domestic banking service. Therefore, it will be unfair if the national banking is still holding their interest rates. "It will give more difficulties in our investment," he added.

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Translated by: Ariyantri E. Tarman