(Adds comment from Mandiri, details from other banks)
JAKARTA, July 24 PT Bank Mandiri Tbk,
Indonesia's biggest lender by assets, reported a rise of 16
percent in first-half net profit, but flagged smaller loan
growth this year, particularly in the mining and coal sectors.
Indonesian banks, especially small and medium lenders, are
facing tight liquidity and rising competition even as Southeast
Asia's largest economy is slowing, largely because of declining
Mandiri expects loans to increase by 15 percent to 17
percent this year, President Director Budi Gunadi Sadikin told
reporters on Thursday. The bank posted loan growth of nearly 22
percent in 2013.
"There needs to be more liquidity added here, especially in
the banking system, if the Indonesian economy is to grow over 6
percent," Sadikin said.
"The lowest (loan) growth is happening in the mining and
coal sectors. It's about 3 percent year-on-year."
Mandiri reported on Thursday net profit of 9.6 trillion
rupiah ($830.1 million) for the six months ended June versus 8.3
trillion rupiah a year earlier, boosted by stronger net interest
income and fee-based income.
PT Bank Central Asia Tbk, Indonesia's largest bank
by market value, expects its loans to grow 8 percent to 10
percent this year, lower than its initial target of 13 percent
to 15 percent, President Director Jahja Setiaatmadja told
reporters on Wednesday.
PT Bank Rakyat Indonesia Tbk said this month it
plans to issue bonds worth 3 trillion rupiah next year to
overcome the tight liquidity in the sector.
(Reporting by Fathiyah Dahrul and Kanupriya Kapoor; Writing by
Eveline Danubrata; Editing by Clarence Fernandez)