"We hope that the Vice President and the State Enterprises Minister will encourage state-owned banks to take the lead in lowering the lending rates to the same level as those in other ASEAN countries," Kadin chairman Bambang Suryo Sulistyo said at a meeting with Vice President Boediono at the latter`s office here Tuesday.
With state-owned banks pioneering a lowering of lending rates it was hoped other banks would follow suit so that interest rates would become more competitive and investment could increase.
He said lending rates had difficulty coming down although inflation had remained under control and tending to drop and banks had plenty of liquidity. Indonesia`s inflation rate in 2011 was recorded at 3.79 percent.
Meanwhile, Bank Indonesia`s policy was conservatively keeping its benchmark rate at six percent while regionally and globally interest rates had sharply dropped.
In addition, the banking industry`s inefficiency had made credit in the field costly. The lending rate in the field now averaged 11 percent.
"The business community, small- and medium-scale enterprises in particular, is thereby unable to benefit from the currently favorable external conditions of the money market," he said.
Bambang also said it was quite possible there was a money market (deposits and SBI (Bank Indonesia Certificates) auctions) cartel where big capital owners, state owned enterprises and government ministries demanded special interest rates causing lending rates to remain high.
Therefore, he said, state-owned banks` role in taking the lead in lowering lending rates was badly needed.
The monetary authorities were also urged to adopt more effective policies to make the banking world work better and extend loans at the same level of interest rates as in other countries, Bambang said. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2012
