Indonesia’s Bank Mandiri signed a memorandum of understanding Monday with PT Holcim Indonesia, on the extending of loans to Holcim’s partner distributors to encourage them to build low-cost houses. The MoU was signed by Bank Mandiri president director Agus Martowardjojo and Holcim president director Timothy Mackay in Jakarta.
Agus said that Mandiri would provide loans of between Rp 100 million (US$10,869) and Rp 300 million to Holcim partner distributors, which are also involved in the manufacturing of concrete products for the house-building trade.
Currently, Holcim, which has 5500 partner distributors, is targeting the sale of enough cement in 2006 to construct 700,000 houses in Central Java. "We will extend loans of up to 60 percent to the partners and Holcim will supply the cement," said Agus.
During the first stage, he said, loans would be given to five concrete-product manufacturers in Cilacap and Solo, both in Central Java, and Yogyakarta, based on recommendations from Holcim. Besides cement distributors, he said, the bank would also facilitate access to loans for people wishing the purchase houses built under the scheme.