ID :
67944
Fri, 06/26/2009 - 18:54
Auther :
Shortlink :
https://www.oananews.org//node/67944
The shortlink copeid
PRESIDENTIAL CANDIDATES` ECONOMIC GROWTH PROMISES DOUBTED
Jakarta, June 26 (ANTARA) - Professional Civic Society Ismed Hasan Putro has cast doubt on presidential candidates' promises, if elected, to boost economic growth to a high level in the coming five years.
"If banks' intermediary role is not running due to difficulties in channeling credits as a result of high interest rates, the economy will also face difficulties to grow. This is because the market ceiling is small and people's purchasing power is weak," Ismed Hasan Putro said.
The government's economic target this year at 4.5 percent could be achieved if banks credits are running well. However, if the banks' credit performance remains as it is today, the economic growth target will be difficult to achieved, he said.
Now banks' credit extension is not running well because lending rates are high, namely reaching 16 percent against the ability of businesses and other customers to pay interest at 12 percent.
Putro believed that the high lending rates at present were linked to politics. While the country is facing legislative and presidential elections, liquidity at banks is feared to run short.
Supposed that there are lots of money reserves at banks, the government must have the courage to cut lending rates and extend credits soon, he said.
If lending rates are lowered, businesses and creditors would compete in borrowing money to open new projects and businesses in turn would offer high job opportunities.
In this case, the government must be bold to disburse stimulus for the business sector so that the economic growth would be moved to achieve the target, or even exceed the government's present target of 4.5 percent, Putro said.
He said that the direction of Indonesia's economic growth at present after the global financial crisis was not yet clear.
"It is different from that in the United States where President Barack Obama is prioritizing the development of the economic sector, he said.
He said that at home, presidential candidates were now fond of expressing 'political' promises without clear directions.
After all, they made the promises during the campaigns to the lower layers of the people.***
"If banks' intermediary role is not running due to difficulties in channeling credits as a result of high interest rates, the economy will also face difficulties to grow. This is because the market ceiling is small and people's purchasing power is weak," Ismed Hasan Putro said.
The government's economic target this year at 4.5 percent could be achieved if banks credits are running well. However, if the banks' credit performance remains as it is today, the economic growth target will be difficult to achieved, he said.
Now banks' credit extension is not running well because lending rates are high, namely reaching 16 percent against the ability of businesses and other customers to pay interest at 12 percent.
Putro believed that the high lending rates at present were linked to politics. While the country is facing legislative and presidential elections, liquidity at banks is feared to run short.
Supposed that there are lots of money reserves at banks, the government must have the courage to cut lending rates and extend credits soon, he said.
If lending rates are lowered, businesses and creditors would compete in borrowing money to open new projects and businesses in turn would offer high job opportunities.
In this case, the government must be bold to disburse stimulus for the business sector so that the economic growth would be moved to achieve the target, or even exceed the government's present target of 4.5 percent, Putro said.
He said that the direction of Indonesia's economic growth at present after the global financial crisis was not yet clear.
"It is different from that in the United States where President Barack Obama is prioritizing the development of the economic sector, he said.
He said that at home, presidential candidates were now fond of expressing 'political' promises without clear directions.
After all, they made the promises during the campaigns to the lower layers of the people.***
