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he Australia and New Zealand (ANZ) Banking Group planned to further boost lending in Indonesia, especially to companies involved in the energy, infrastructure and agriculture sectors, said ANZ Indonesia chairman Joseph Abraham on Wednesday.

“We see a lot more opportunity [in financing such projects] as we continue to work with major state-owned enterprises that play a big role in economy. Last year, we grew by 35 percent. [This year] I would say [we expect] sustainable growth,” he said in a panel interview in Jakarta, without disclosing ANZ Indonesia’s credit target.

ANZ is the largest Australian service sector investor in Indonesia. In the past two years, the Melbourne-based firm disbursed Rp 1.6 trillion (US$171.2 million) in loans in Indonesia, including a $65 million syndicated loan for sea port operator Pelindo III to expand port facilities in Surabaya.

ANZ also channeled $125 million in loans to state steel manufacturer Krakatau Posco; and $700 million in loans and a $130 million import credit for state-owned oil company Pertamina. In the future, ANZ Indonesia may add cattle farming companies to its investment list.

After meeting with President Susilo Bambang Yudhoyono a day before, ANZ Banking Group chief Michael Smith said that ANZ was ready to go along with President’s plan to develop cattle farming industries in the eastern part of Indonesia.

“I think the President is looking for a practical solution to issue of livestock transfer. And, I agree with him. Australia, New Zealand and Indonesia can work together to create solution. We are very interested because agriculture is a major part of what we’ve worked on,” he said without disclosing any specific plans.

Smith said that Indonesian’s economic prospects were quite promising, but the government should be able to provide more conducive policies to attract foreign investments in support of economic growth. “It is important to understand that capital that required supporting banking asset growth realistically comes from overseas. It makes sense that any regulation would support that,” he said, while adding that ANZ will comply with any Indonesia’s central bank regulations, including a probable regulation on bank ownership limitations.

“Banking potential in Indonesia is $300 billion. Based on the economy growth trajectory, in 10 years time, the potential will grow five times to $1.5 trillion. [That growth requires] additional capital of about $120 billion. Therefore, getting access to that capital is critical for Indonesia. And that comes from global market,” he said.

Providing more loans for Indonesia was part of ANZ’s plan to boost contributions from its Asia Pacific business by 10 percent in the next ten years, Smith said.

“Currently, our Asia Pacific business contributes to 20 percent ANZ’s global business, increasing from 7 percent five years ago. We want to get around 25 percent to 30 percent by 2022,” he said.

Utilizing a super regional strategy, ANZ is currently trying to strengthen Asia Pacific, Australia and New Zealand business units and build linkages between them. (yps)