Indonesia's biggest bank by assets, PT Bank Mandiri Tbk, said on Wednesday it was looking to boost its lending to the country's mining industry following an improvement in performance by some companies in the sector. "We have started to eye the mining sector again, even coal, now that clients' cashflow has got better," Kartika Wirjoatmodjo, the chief executive of Mandiri, told reporters.
He said the state-controlled bank had already lifted lending to some copper and gold miners this year. Mandiri's plan is a sign of confidence in mining after Indonesian banks limited their lending exposure to the sector in the last few years when commodity prices were falling.
Lending to the mining sector in November by the country's banks fell 3.44 percent from a year ago, but the pace of decline was significantly slower than the previous month when mining loans contracted 12.6 percent. Wirjoatmodjo said this year he sees coal mining as "more positive" on stronger prices, although he said the bank would still be cautious in its lending.
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