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Jakarta Post

Indonesia needs cheaper borrowing to improve transportation services

  • Marchio Irfan Gorbiano

    The Jakarta Post

PREMIUM
Jakarta   /   Fri, October 18, 2019   /  01:48 pm
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State-owned port operator Pelindo I ‘s senior executives inspect the Kuala Tanjung Multipurpose Terminal (KTMT) in North Sumatra. The government plans to further expand the country’s seven major ports in the next five years to further reduce logistics costs. (The Jakarta Post/Apriadi Gunawan)

Indonesia needs lower borrowing costs to further develop its transportation facilities and services so that the government’s goal of reducing logistics costs could be achieved, an industry representative has said. Indonesian Chamber of Commerce and Industry (KADIN) deputy chairwoman Carmelita Hartoto said more competitive interest rates for the transportation sector, which usually borrow for longer tenures compared to other businesses, would help the transportation sector expand. “If we can secure financing with lower rates compared to other sectors, it would be better for us,” said Carmelita in Jakarta on Wednesday. “Our lending rate is still at double digits and we hope that it can be reduced to a single digit like in other countries.” Carmelita, who is also chairwoman of the Indonesian National Shipowners Association (INSA), said the local transp...