BI SAYS NO REDUCTION IN CREDIT GROWTH TARGET

Jakarta, May 28 (ANTARA) - Bank Indonesia Senior Deputy Governor Miranda S Goeltom said here on Thursday there was no reduction in the bank's credit growth target for 2009 which had been set at around 15 percent.

"No. There is no reduction," she said after meeting with House Commission XI,
She said conditions of banks in the country were right now strong as shown by their performance and the results of stress tests so far.

"So, there is nothing to be worried about," she said.

Asked about rumors that a bank had performed badly, Miranda said that they were not true. "There is nothing like that," she said.

BI deputy governor Mulyaman D Hadad meanwhile said that the growth of bank credits this year would remain good despite previous fears about the contrary.

He said until now no bank had revised its credit growth target. He said banks had targeted 15.6 percent in credit growth for 2009 according to their plan that had been reported to BI. This was lower than 30 percent set for 2008.

Another BI deputy governor, Hartadi A Sarwono, said that credits had started to grow well as seen by the reversal in target from initially set at 10 percent to 15 percent.

In March 2009 BI recorded capital adequacy ratio was at 18.03 percent with total credits reaching Rp1,305 trillion, funds from third party Rp1,786 trillion, lending to deposit ratio at 73.08 percent and return on asset ratio at 2.76 percent.

The central bank's research and information bureau also recorded an increase in profit in March 2009 compared with March 2008.

Banks' profit in March 2009 reached Rp12.24 trillion or rose from Rp9.54 trillion recorded in the same period last year.