Big Indon banks count on infrastructure deals

Jakarta

INDONESIA'S big, state-run banks are counting on government-led infrastructure projects to revive flagging loan growth as they reduce credit lines to the risky commodities sector and as local businesses delay expansion plans.

A more cautious approach to lending since last year cut overall loan growth to 11.5 per cent in January, the smallest year-on-year gain in almost five years, the latest central bank data shows. The lending slowdown lowered 2014 profit growth to 4.5 per cent, the weakest pace in nine years, according to a Thomson Reuters analysis of 15 banks including PT Bank Mandiri, PT Bank Central Asia and PT Bank Rakyat Indonesia.