ID :
27956
Sat, 11/01/2008 - 23:12
Auther :
Shortlink :
https://www.oananews.org//node/27956
The shortlink copeid
KADIN CHIEF ASKS BIZMEN TO REPATRIATE OVERSEAS CAPITAL
Batam, Indonesia, Nov 1 (ANTARA) - Indonesian Chamber of Commerce and Industry (Kadin) chairman MS Hidayat has asked businessmen to repatriate the capital they were keeping abroad in view of the current global financial crisis.
"The funds need to be repatriated to Indonesia so that our liquidity will not dry up," he said when attending a forum of Kadin members in Sumatra here on Saturday.
He said if the funds the businessmen were keeping abroad were brought home, domestic capital supply would not drop and the real sector would continue to move.
The real sector had to be developed in order to weather the current global crisis, Hidayat said.
Hidayat also asked the government to overcome banking problems. "Banking must be made normal again and only after that will the real sector really move," he said.
He predicted Indonesia would feel the impact of the crisis for at least a year.
The Association of Young Indonesian Businessmen (HIPMI) meanwhile has asked Bank Indonesia to lower its reference rate by at least 50 basis points within the next two months.
HIPMI general chairman Erwin Aksa said the measure was needed to give the business community a stimulus in the form of an interest rate cut of at least two to three percent.
"This will later enable businesses to gain access to capital again and eliminate banks' worries about problematic credits," he said.
He said the present 9.50 percent BI Rate was too high and hindering businesses in seeking low-interest credit.
He said the situation had also prompted the banking industry to take long consideration becfore deciding to give credits because of their fear that credits would become a problem due to the high interest rate.
"Therefore, we actually regret the rise. Moreover, the Fed has lowered its rate and Japan which never lowered the rate for seven years has also done it," he said.
"The funds need to be repatriated to Indonesia so that our liquidity will not dry up," he said when attending a forum of Kadin members in Sumatra here on Saturday.
He said if the funds the businessmen were keeping abroad were brought home, domestic capital supply would not drop and the real sector would continue to move.
The real sector had to be developed in order to weather the current global crisis, Hidayat said.
Hidayat also asked the government to overcome banking problems. "Banking must be made normal again and only after that will the real sector really move," he said.
He predicted Indonesia would feel the impact of the crisis for at least a year.
The Association of Young Indonesian Businessmen (HIPMI) meanwhile has asked Bank Indonesia to lower its reference rate by at least 50 basis points within the next two months.
HIPMI general chairman Erwin Aksa said the measure was needed to give the business community a stimulus in the form of an interest rate cut of at least two to three percent.
"This will later enable businesses to gain access to capital again and eliminate banks' worries about problematic credits," he said.
He said the present 9.50 percent BI Rate was too high and hindering businesses in seeking low-interest credit.
He said the situation had also prompted the banking industry to take long consideration becfore deciding to give credits because of their fear that credits would become a problem due to the high interest rate.
"Therefore, we actually regret the rise. Moreover, the Fed has lowered its rate and Japan which never lowered the rate for seven years has also done it," he said.
