Jakarta (ANTARA News) - Bank Indonesia (BI) will issue a policy for reducing bank lending rates after banks have proven to be willing to lower them only by an average of 85 basis points, a spokesman said here on Friday.

BI`s director of banking research and regulation, Halim Alamsyah, said the drop in banks` lending rate so far had yet to match the reduction in the central bank`s key rates of 300 basis points.

He said Bank Indonesia would study several factors that had made banks` operational cost high so that they were unable to cut their lending rates further.

The policy would list components that would be limited and would emphasize efficiency. "Inefficient banks certainly impose high interest rates," he said.

Halim said the central bank would still continue implementing the single present policy especially for state-owned banks.

To meet the regulation the state enterprises ministry would realize the option for the establishment of a state-owned holding company. He said the option would be realized now or after 2009 or after the general elections with a view to avoding political suspicions.

Halim said the policy would be implemented this year but for the state-owned companies its implemention would be extended because it would take more time as it has to be consulted with the House of Representatives.(*)