ID :
45754
Sun, 02/15/2009 - 23:23
Auther :
Shortlink :
https://www.oananews.org//node/45754
The shortlink copeid
TIGHT LIQUIDITY AND LATE ISSUANCE OF STIMULUS INCREASE LAY-OFFS
Jakarta, Feb 15 (ANTARA) - Noted enterprenuer Ciputra said that tight liquidity and the late issuance of government stimulus to the real sector could increase lay-offs.
"What the business sector, particularly property, wants is merely smooth distribution of credits, low down payments and reasonable bank interest," he said to ANTARA here over the weekend.
He said that although the rate of Bank Indonesia Certificates had dropped, Home Ownership Credits (KPR) remained high. Credit distribution from banks meanwhile was often not smooth, he said.
Ideally, the KPR rate must be as high as that before the financial crisis namely 10 percent. "Meanwhile distribution of credits must also be made smooth. Selection must not be tight," he said.
The general chairman of the Association of Indonesian Businessmen (Apindo), Sofyan Wanandi, said before that the number of lay-offs in the country would increase because industries and service businesses could not stand.
He said around 2,000 housing units were not sold due to decreasing public buying power. Automotive producers in the country have even been ready to cut production by 30 to 50 percent, he said.
The chairman of the Prosperous Justice Party (PKS) for economic, industrial and technological affairs, Mohamad Sohibul Iman, meanwhile said that basically the government had already had an incentive scheme to reduce lay-offs.
However, he suggested that the government found other incentives in case lay-offs still continued. "Incentives such as for infrastructure projects are important to open employment. The KUR (smallholders' credit scheme) will also help villages absorb workers," he said.
Sohibul said a lot of criticism had been heard stating that the current stimulus program was wrong. So far, he said, his party considered that it was the farmers in villages that should be given a stimulus.
"The target must not be reducing lay-offs in industries but the farmers in villages where they have to lose employment and have to bear the burden of their families who return to the village after being laid-off," he said.
Regarding the businessmen' complaint over the stimulus that had not been approved by the House of Representatives so far, Sohibul admitted that it had to do with politics.
"The PKS hopefully could be more responsive towards the problem which is actually a mere communication problem between the executive and the legislative so that the process could be finished soon," he said.
He said the PKS could try to seek breakthroughs but "the most important thing is the integrity remains safeguarded."
"What the business sector, particularly property, wants is merely smooth distribution of credits, low down payments and reasonable bank interest," he said to ANTARA here over the weekend.
He said that although the rate of Bank Indonesia Certificates had dropped, Home Ownership Credits (KPR) remained high. Credit distribution from banks meanwhile was often not smooth, he said.
Ideally, the KPR rate must be as high as that before the financial crisis namely 10 percent. "Meanwhile distribution of credits must also be made smooth. Selection must not be tight," he said.
The general chairman of the Association of Indonesian Businessmen (Apindo), Sofyan Wanandi, said before that the number of lay-offs in the country would increase because industries and service businesses could not stand.
He said around 2,000 housing units were not sold due to decreasing public buying power. Automotive producers in the country have even been ready to cut production by 30 to 50 percent, he said.
The chairman of the Prosperous Justice Party (PKS) for economic, industrial and technological affairs, Mohamad Sohibul Iman, meanwhile said that basically the government had already had an incentive scheme to reduce lay-offs.
However, he suggested that the government found other incentives in case lay-offs still continued. "Incentives such as for infrastructure projects are important to open employment. The KUR (smallholders' credit scheme) will also help villages absorb workers," he said.
Sohibul said a lot of criticism had been heard stating that the current stimulus program was wrong. So far, he said, his party considered that it was the farmers in villages that should be given a stimulus.
"The target must not be reducing lay-offs in industries but the farmers in villages where they have to lose employment and have to bear the burden of their families who return to the village after being laid-off," he said.
Regarding the businessmen' complaint over the stimulus that had not been approved by the House of Representatives so far, Sohibul admitted that it had to do with politics.
"The PKS hopefully could be more responsive towards the problem which is actually a mere communication problem between the executive and the legislative so that the process could be finished soon," he said.
He said the PKS could try to seek breakthroughs but "the most important thing is the integrity remains safeguarded."
