PEKANBARU – The decreasing of global crude palm oil (CPO) price affects risk level of credits palm oil plantation subsector in Riau Province until the third trimester of 2014.
From to the statement the Chairman of Reperesentatives of Indonesian Bank (IB) in Riau, Mahdi Muhammad, as cited by Antara Sumbar, on Thursday (04/12/2014), non performing loan (NPL) of palm oil subsector takes 14% portion of the total of NPL in Riau.
According to the regional study data of IB, citing the big amount of NPL on palm oil plantation subsector due to the development of palm oil commodity for this few years which have been attracted the local banking to give loans for palm oil stakeholders who have limited capital value.
It is recorded, on September 2014, palm oil plantation sector takes about 19% portion or Rp9,91 trillion from total credits in Rp50,98 trillion that given by Riau. “The big of credits portion given to palm oil plantations sector and the increasing of NPL from this sector will threaten the financial stability,” he said. (T3)
