ID :
22957
Mon, 10/06/2008 - 21:35
Auther :
Shortlink :
http://m.oananews.org//node/22957
The shortlink copeid
BI URGED TO EASE TIGHT MONEY POLICY
Jakarta, Oct 6 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has called on Bank Indonesia (BI), the central bank, to loosen its tight money policy by changing its policies affecting liquidity.
"BI should change its policy by, for example, reducing the minimum reserves ratio requirement linked to the loan-to-deposit ratio (LDR) and deferring the state debentures (SUN) maturity date," Kadin chairman Ms Hidayat said here on Monday.
He said Indonesia should take anticipatory and preventive steps in the face of the current global financial crisis because Indonesia had relations with other countries.
"The government is required to take immediate and correct actions in order to protect the national economy and business climate from the multiple effects of the global financial crisis," he said.
Kadin also recommended that the government speed up the spending of the state budget in order to restore liquidity in the financial sector after the withdrawal of SUNs.
BI and the government also needed to reinforce the implementation of the financial sector's safety net and the role of lenders of the last resort.
Other recommendations made by Kadin included the cutting of logistics costs at ports, the reviewing of the electricity tariff at peak hours and increase labor wages in accordance with companies ability.
"BI should change its policy by, for example, reducing the minimum reserves ratio requirement linked to the loan-to-deposit ratio (LDR) and deferring the state debentures (SUN) maturity date," Kadin chairman Ms Hidayat said here on Monday.
He said Indonesia should take anticipatory and preventive steps in the face of the current global financial crisis because Indonesia had relations with other countries.
"The government is required to take immediate and correct actions in order to protect the national economy and business climate from the multiple effects of the global financial crisis," he said.
Kadin also recommended that the government speed up the spending of the state budget in order to restore liquidity in the financial sector after the withdrawal of SUNs.
BI and the government also needed to reinforce the implementation of the financial sector's safety net and the role of lenders of the last resort.
Other recommendations made by Kadin included the cutting of logistics costs at ports, the reviewing of the electricity tariff at peak hours and increase labor wages in accordance with companies ability.
