Indonesia Considering China`s Loan for Oil Palm Replanting

Coordinating Minister for Maritime Affairs of Indonesia Luhut Binsar Panjaitan intends to immediately implement the offer of China Development Bank to finance the replanting of palm oil in the country. He has invited the Association of Indonesian Oil Palm Farmers (Apkasindo) as the party who will receive the financing on the land to be rejuvenated. reviously, during a visit to Indonesia in early May, Chinese Prime Minister Li Keqiang submitted an offer for the financing. `According to Apkasindo, they asked for 2.5 million ha and later this financing will be distributed to two cooperatives,` said Luhut in his office some time ago. The micro financing program is designed to be economical. However, Luhut is still negotiating for lower interest than the Subsidiary Business Credit (KUR) which currently rated at 7%. CDB entrusts all financing distribution schemes to Indonesia. However, he does not want the government to intervene in it. `The important thing is that this cooperation can provide very economical interest scheme, hopefully cheaper than micro credit interest,` added Luhut. ***