ID :
54536
Thu, 04/09/2009 - 11:13
Auther :
Shortlink :
https://www.oananews.org//node/54536
The shortlink copeid
BI RATE CUT NO GUARANTEE AUTO SALES WILL RISE
Jakarta, April 8 (ANTARA) - The recent cut in the Bank Indonesia benchmark rate (BI Rate) is no guarantee that auto sales in Indonesia will rise, Association of Indonesian Auto Industries (Gaikindo) chairman Bambang Trisulo said.
"Bank interest rates will not drop immediately after the BI Rate cut. So it will not directly affect sales," he said here Wednesday.
He said leasing companies also needed time to make adjustments with regard to determining new credit interest.
In view of that he said auto sales would not immediately rise after the BI Rate dropped.
Bank Indonesia (BI/the central) recently cut its benchmark rate by 25 basis points from 7.75 percent to 7.5 percent.
PT Indomobil Group's chief commissioner Soebronto Laras earlier said that the main problems faced by the auto industry in the country were financial institutions' commitment and the automotive price which was still not normal.
He said financial institutions should be able to make bank interest rates drop. The problem was the effect of BI Rate cut so far had never been felt at the retail level.
The unstable rupiah exchange rate had also become an obstacle for the car price to be normal again.
PT Indomobil Group's president director Gunadi Sindhuwinata meanwhile said a functional monetary stimulus would be needed to boost public purchasing power.
"The BI Rate is indeed under control and so is inflation but if liquidity is tight it will be useless," he said.
"Bank interest rates will not drop immediately after the BI Rate cut. So it will not directly affect sales," he said here Wednesday.
He said leasing companies also needed time to make adjustments with regard to determining new credit interest.
In view of that he said auto sales would not immediately rise after the BI Rate dropped.
Bank Indonesia (BI/the central) recently cut its benchmark rate by 25 basis points from 7.75 percent to 7.5 percent.
PT Indomobil Group's chief commissioner Soebronto Laras earlier said that the main problems faced by the auto industry in the country were financial institutions' commitment and the automotive price which was still not normal.
He said financial institutions should be able to make bank interest rates drop. The problem was the effect of BI Rate cut so far had never been felt at the retail level.
The unstable rupiah exchange rate had also become an obstacle for the car price to be normal again.
PT Indomobil Group's president director Gunadi Sindhuwinata meanwhile said a functional monetary stimulus would be needed to boost public purchasing power.
"The BI Rate is indeed under control and so is inflation but if liquidity is tight it will be useless," he said.
