ID :
36408
Thu, 12/18/2008 - 23:20
Auther :
Shortlink :
https://www.oananews.org//node/36408
The shortlink copeid
KADIN ASKS BI TO LOWER BI RATE TO 8.5 PERCENT
Jakarta, Dec 18 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has asked the central bank (BI) to drop its key rate from 9.25 percent to 8.5 percent to help smoothen liquidity for businesses.
"At least to 8.5 percent. Even the Fed had courage to lower its key rate by 0.75 percent," head of Kadin's committee for small and medium businesses, Sandiaga Uno, said here on Thursday.
He said the drop in the BI Rate was expected to be able to lower lending rates to help businesses in facing current financial crisis.
The drop would also stimulate banks to extend their credits as the government did not give them a blanket guaratee, he said.
He said with the Fed lowering its key rate by 0.75 percent US dollar savings in banks in that country would drop as interest was low. This will strengthen the exchange rate of the dollar against other foreign currencies, he said.
"So, we hope BI will immediately cut the BI Rate so that funding to businesses will flow," he said.
He said the current world's financial crisis was the heaviest and deepest in the last 25 years. Because of the condition banks' performance in the past five quarters dropped, he said.
He said businessmen who could manage their production cost would be safe from crisis. He said a lot of things could be done to suppress cost and tax was one of them.
"If liquidity is still tight it is not impossible Kadin will ask for fiscal postponement," he said.
Another Kadin leader, Anindya Bakrie, meanwhile said strengthening the domestic market was important as 70 percent of the country's gross domestic product was contributed by the domestic market.
In view of that he said it was important for Kadin to make efforts to make the domestic market keep moving in 2009.
"At least to 8.5 percent. Even the Fed had courage to lower its key rate by 0.75 percent," head of Kadin's committee for small and medium businesses, Sandiaga Uno, said here on Thursday.
He said the drop in the BI Rate was expected to be able to lower lending rates to help businesses in facing current financial crisis.
The drop would also stimulate banks to extend their credits as the government did not give them a blanket guaratee, he said.
He said with the Fed lowering its key rate by 0.75 percent US dollar savings in banks in that country would drop as interest was low. This will strengthen the exchange rate of the dollar against other foreign currencies, he said.
"So, we hope BI will immediately cut the BI Rate so that funding to businesses will flow," he said.
He said the current world's financial crisis was the heaviest and deepest in the last 25 years. Because of the condition banks' performance in the past five quarters dropped, he said.
He said businessmen who could manage their production cost would be safe from crisis. He said a lot of things could be done to suppress cost and tax was one of them.
"If liquidity is still tight it is not impossible Kadin will ask for fiscal postponement," he said.
Another Kadin leader, Anindya Bakrie, meanwhile said strengthening the domestic market was important as 70 percent of the country's gross domestic product was contributed by the domestic market.
In view of that he said it was important for Kadin to make efforts to make the domestic market keep moving in 2009.
