VIVAnews - Entrepreneurs fear that the BI Rate which was again cut by 25 basis points to 7.25 percent would not be able to ease the inflated loan interest rate. They considered the new BI rate is still too high.
Head of Domestic Trade Permanent Commission at the Indonesian Chamber of Commerce (Kadin) Bambang Soesatyo told VIVAnews on Tuesday, May 5, that business community is still expecting a significant decrease of loan interest rate having a scale of either below or slightly above 10 percent.
"If the current BI rate is at 7.25 percent, will it lead to a decrease in bank loan interest rate?" he said.
Entrepreneurs' doubt is due to the fact that previous cuts in the BI rate prove unsuccessful of declining bank loan interest rate. The reason for this is that banks are still lacking liquidity. "Our banks bear high interest in fixed deposit. As a result, interbank loan interest rate is still very high," he said.
Based on the said fact, it is difficult to expect that bank loan interest rate can be significantly cut. The main problem to be solved is concerned with liquidity. "Kadin has suggested BI to take initiative to materialize polling fund," he said.
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Translated by: Ariyantri E. Tarman
