ID :
28294
Tue, 11/04/2008 - 12:12
Auther :
Shortlink :
http://m.oananews.org//node/28294
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BI ASKED TO LOWER BENCHMARK RATE
Jakarta, Nov 3 (ANTARA) - Deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for taxation and fiscal system Haryadi Sukamdani said now was the time for Bank Indonesia (BI) to lower its benchmark interest rate from 9.5 percent to 6-8 percent.
"We are calling on BI to cut its interest reference rate. It should be lowered again to the 6-8 level. I don't know how BI will do it but an interest rate of over 9 percent is not good," Sukamdani said.
Sukamdani made the remarks after attending a meeting that discussed how to increase Indonesian exports at the Trade Ministry here on Monday.
He said that banks now should take relaxation steps owing to the fact that BI had successfully overcome the liquidity problem by issuing a short-term funding facility (FPJP) regulation.
It was stated in the regulation that banks could use the facility when there was a mismatch in their fund flow, namely smaller inflow than outflow that caused difficulties for them to meet their minimum reserve requirement.
"Banks should take a relaxation step because a high interest rate would endanger the real sector if they continue to maintain a high rate," he said.
Last week, young Indonesian businessmen also called on Bank Indonesia (the central bank/BI) to cut its benchmark interest rate by at least 50 basis points in the next two months.
The cut in the key rate, locally known as BI Rate, would stimulate banks to lower their lending rates by 2-3 percent, Chairman of the Young Indonesian Businessmen Association (HIPMI) Erwin Aksa said over the weekend.
"Hopefully, the cut in the key rate will give the business world access to capital and banks will no longer be afraid of non-performing loans," he said.
He said BI Rate which currently stood at 9.50 percent was too high, depriving the business world of access to low interest credits to finance their businesses.
"We are calling on BI to cut its interest reference rate. It should be lowered again to the 6-8 level. I don't know how BI will do it but an interest rate of over 9 percent is not good," Sukamdani said.
Sukamdani made the remarks after attending a meeting that discussed how to increase Indonesian exports at the Trade Ministry here on Monday.
He said that banks now should take relaxation steps owing to the fact that BI had successfully overcome the liquidity problem by issuing a short-term funding facility (FPJP) regulation.
It was stated in the regulation that banks could use the facility when there was a mismatch in their fund flow, namely smaller inflow than outflow that caused difficulties for them to meet their minimum reserve requirement.
"Banks should take a relaxation step because a high interest rate would endanger the real sector if they continue to maintain a high rate," he said.
Last week, young Indonesian businessmen also called on Bank Indonesia (the central bank/BI) to cut its benchmark interest rate by at least 50 basis points in the next two months.
The cut in the key rate, locally known as BI Rate, would stimulate banks to lower their lending rates by 2-3 percent, Chairman of the Young Indonesian Businessmen Association (HIPMI) Erwin Aksa said over the weekend.
"Hopefully, the cut in the key rate will give the business world access to capital and banks will no longer be afraid of non-performing loans," he said.
He said BI Rate which currently stood at 9.50 percent was too high, depriving the business world of access to low interest credits to finance their businesses.
