ID :
109240
Mon, 03/01/2010 - 23:48
Auther :
Shortlink :
https://oananews.org//node/109240
The shortlink copeid
IDEAL LENDING RATE BELOW 10 PCT : HIPMI
Jakarta, March 1 (ANTARA) - The ideal level of banks' lending rate in the country's present financial-economic conditions is below 10 percent, according to the Indonesian Young Entrepreneurs Association (HIPMI).
"The ideal credit interest level in Indonesia now is between 9 percent and 10 percent, like in other countries," HIPMI chairman Erwin Aksa said here on Monday.
He said Indonesian banks should not be spoiled with high interest rates, and for this purpose the government should intervene to make banks lower their landing rates.
"The government should not only raise a discourse but must also take concrete actions to cut lending rates," Aksa told a press conference.
He said most industries at home still relied on bank funds to finance their operations.
With a lowered interest rate, the HIPMI chairman said, domestic industries would be able to compete in the free trade era which had already begun with the China-ASEAN Free Trade Area (CAFTA) agreement.
"HIPMI is not afraid to face CAFTA but it needs government support," Aksa said.
Besides government support in the form of low interest rates, HIPMI also hoped that the government would meet the need for enough infrastructure, simple bureaucratic procedures and efforts to overcome smuggling of goods into the country.
On the occasion, the HIPMI chairman also touched on the impact of present political events on the country's industrial development.
"The political elite must be sensitive to the people's suffering. If they continue to quarrel, this country will never be able to develop its economy. We have to avoid disunity and place the common interest above that of groups or individuals," Aksa said.
Therefore, he called on the country's political elite to put aside their personal and egoistic agendas and give priority to togetherness and unity.
"The ideal credit interest level in Indonesia now is between 9 percent and 10 percent, like in other countries," HIPMI chairman Erwin Aksa said here on Monday.
He said Indonesian banks should not be spoiled with high interest rates, and for this purpose the government should intervene to make banks lower their landing rates.
"The government should not only raise a discourse but must also take concrete actions to cut lending rates," Aksa told a press conference.
He said most industries at home still relied on bank funds to finance their operations.
With a lowered interest rate, the HIPMI chairman said, domestic industries would be able to compete in the free trade era which had already begun with the China-ASEAN Free Trade Area (CAFTA) agreement.
"HIPMI is not afraid to face CAFTA but it needs government support," Aksa said.
Besides government support in the form of low interest rates, HIPMI also hoped that the government would meet the need for enough infrastructure, simple bureaucratic procedures and efforts to overcome smuggling of goods into the country.
On the occasion, the HIPMI chairman also touched on the impact of present political events on the country's industrial development.
"The political elite must be sensitive to the people's suffering. If they continue to quarrel, this country will never be able to develop its economy. We have to avoid disunity and place the common interest above that of groups or individuals," Aksa said.
Therefore, he called on the country's political elite to put aside their personal and egoistic agendas and give priority to togetherness and unity.
