ID :
34171
Fri, 12/05/2008 - 20:58
Auther :
Shortlink :
http://m.oananews.org//node/34171
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BI RATE CUT GOOD FOR REAL SECTOR: ECONOMIST
Jakarta, Dec 5 (ANTARA) - The lowering of Bank Indonesia (BI)'s benchmark rate by 25 basis points to 9.25 percent is a good step to stimulate the real sector, according to Toni Prasetiantono, chief economist at state-owned BNI bank.
"The lowering of the central bank's benchmark rate will slacken banks' liquidity and boost the development of the real sector," he said here on Friday.
He hoped that banks would also reduce their interest rates. "We hope they will cut their interest rates, though they need time before doing so for their debtors," he said.
Besides, he also predicted that banks' non-performing loans would also go down because banks were willing to channel their funds to debtors.
Based on the BI data in September 2008, public banks' credit provision reached Rp1,246.15 trillion while at the same time they also collected third party funds amounting to Rp1,603.45 trillion.
Loan to deposit ratio (LDR) reached 77.72 percent or it declined from 79.02 percent in August 2008. The percentage of non-performing loans reached 3.32 percent.
Toni said that the fact that the inflation rate could be controlled had provided the monetary authorities to lower the BI Rate.
"Bank Indonesia was of the view that inflationary pressures began to slow down as well. It was responsive enough to voices made by parties outside the bank, and this is an encouraging one," he said.
The Central Bureau of Statistics (BPS) has announced that inflation in November 2008 was 0.12 percent. The November inflation was lower than that in October which stood at 0.45 percent.
The January-November 2008 inflation was recorded at 11.10 percent while the year-on-year inflation (November 2007 - November 2008) inflation stood at 11.68 percent.
Toni said that for the real sector, the lowering of banks interest rates was a momentum for carrying out business expansion.
"Businesspeople would become more courageous to borrow more money from banks," the BIN chief economist said.
"The lowering of the central bank's benchmark rate will slacken banks' liquidity and boost the development of the real sector," he said here on Friday.
He hoped that banks would also reduce their interest rates. "We hope they will cut their interest rates, though they need time before doing so for their debtors," he said.
Besides, he also predicted that banks' non-performing loans would also go down because banks were willing to channel their funds to debtors.
Based on the BI data in September 2008, public banks' credit provision reached Rp1,246.15 trillion while at the same time they also collected third party funds amounting to Rp1,603.45 trillion.
Loan to deposit ratio (LDR) reached 77.72 percent or it declined from 79.02 percent in August 2008. The percentage of non-performing loans reached 3.32 percent.
Toni said that the fact that the inflation rate could be controlled had provided the monetary authorities to lower the BI Rate.
"Bank Indonesia was of the view that inflationary pressures began to slow down as well. It was responsive enough to voices made by parties outside the bank, and this is an encouraging one," he said.
The Central Bureau of Statistics (BPS) has announced that inflation in November 2008 was 0.12 percent. The November inflation was lower than that in October which stood at 0.45 percent.
The January-November 2008 inflation was recorded at 11.10 percent while the year-on-year inflation (November 2007 - November 2008) inflation stood at 11.68 percent.
Toni said that for the real sector, the lowering of banks interest rates was a momentum for carrying out business expansion.
"Businesspeople would become more courageous to borrow more money from banks," the BIN chief economist said.
