VIVAnews - The national banking is still deemed the cause of the low credit disbursement for the real sector despite the Indonesian government's expectation that the sector can boost the economic development.
According to Sigit Pramono last week, September 4, the loan interest rate provided by the national banks has been the lowest since the country proclaimed its independence. According to him, house loans have now reached 9-10 percent compared to it was 10 years ago at 20 percent.
"The low credit disbursement leads to lower purchasing power," said Sigit.
In addition, the undisbursed loan in banking industry is estimated to reach Rp 480 trillion. This is due to entrepreneurs' decision of refusing to propose for loans in banks.
Banking industry also pays attention to the impulsive policies issued by Bank Indonesia which sent mixed signal to the market. Bank Indonesia (BI) has been much into responding the short-term pressures in the market as much as reacting over political policies.
An example of this is its decision to issue Loan to Deposit Ratio (LDR) and statutory reserve policies regarding credit growth.
"A policy demands banks to disburse credit while other policies want pressure over liquidity. The policies confuse the market and its players," said Sigit.
Moreover, Indonesia does not have any bank of international level which plays an important role in regional level.
"Indonesia will be like Spain and Greece, two countries that are not yet ready with the single market policy," said Sigit.
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Translated by: Bonardo Maulana W
