ID :
93122
Fri, 12/04/2009 - 09:18
Auther :
Shortlink :
https://www.oananews.org//node/93122
The shortlink copeid
BUSINESS LEADER: ECONOMY TO GROW 5.5 PCT AT MOST
Jakarta, Dec 3 (ANTARA) - A business leader said here on Thursday Indonesia`s economy would only grow at a maximum rate of 5.5 percent next year.
"Our prediction is next year the economy will grow at a maimum rate of 5.5 percent. It cannot go higher than that," Sofyan Wanandi, chairman of the Association of Indonesian Businessmen (Apindo), said after attending the opening of the national meeting of the Indonesian Chamber of Commerce and Industry (Kadin).
He said the economy could grow more than 5.5 percent only if the government immediately improved the infrastructure such as roads and electricity supply, reformed the bureaucracy and amended laws that hinder improvement of the investment climate.
Regarding the rupiah`s exchange rate, Sofyan said it was impossible to maintain it at its present level because it would all depend upon the US dollar. He predicted the rupiah`s exchange rate would remain within a range of between Rp9,000 and Rp9,500 against the greenback next year.
"This is our prediction, and all exporters and importers agree with it," he said.
On exports, Sofyan said that they would not change much because domestic investment did not grow either. "If the prices of our commodities improve, the value of our exports will also increase but if they don`t, our export earnings will not rise either," he said.
So far the country`s exports relied on natural resources while exports of manufactured goods had dropped because no improvement has been made on infrastructure so that investment was not rising, he said.
About bank lending interest rates, Sofyan hoped they could drop to around 12 percent. He expressed concern that credits distributed by banks so far were mere consumer credits while no investment credits had been extended.
He said banks had so far only extended credits to state-owned companies and not to private companies because they did not trust private businessmen.
"At the most they would only extend working capital. They would not have the courage to extend credits for investment," he said.
Therefore, Sofyan called on the government to finish its homework namely improving the infrastructure so that businessmen and new investors could move.***2***
"Our prediction is next year the economy will grow at a maimum rate of 5.5 percent. It cannot go higher than that," Sofyan Wanandi, chairman of the Association of Indonesian Businessmen (Apindo), said after attending the opening of the national meeting of the Indonesian Chamber of Commerce and Industry (Kadin).
He said the economy could grow more than 5.5 percent only if the government immediately improved the infrastructure such as roads and electricity supply, reformed the bureaucracy and amended laws that hinder improvement of the investment climate.
Regarding the rupiah`s exchange rate, Sofyan said it was impossible to maintain it at its present level because it would all depend upon the US dollar. He predicted the rupiah`s exchange rate would remain within a range of between Rp9,000 and Rp9,500 against the greenback next year.
"This is our prediction, and all exporters and importers agree with it," he said.
On exports, Sofyan said that they would not change much because domestic investment did not grow either. "If the prices of our commodities improve, the value of our exports will also increase but if they don`t, our export earnings will not rise either," he said.
So far the country`s exports relied on natural resources while exports of manufactured goods had dropped because no improvement has been made on infrastructure so that investment was not rising, he said.
About bank lending interest rates, Sofyan hoped they could drop to around 12 percent. He expressed concern that credits distributed by banks so far were mere consumer credits while no investment credits had been extended.
He said banks had so far only extended credits to state-owned companies and not to private companies because they did not trust private businessmen.
"At the most they would only extend working capital. They would not have the courage to extend credits for investment," he said.
Therefore, Sofyan called on the government to finish its homework namely improving the infrastructure so that businessmen and new investors could move.***2***
