VIVAnews - This year, Bank Indonesia saw a decline in credit growth to around 11 percent, lower than the targeted percentage of 15 percent. The central bank expected that next year the credit growth may reach 17 percent.
According to Bank Indonesia Senior Deputy Governor Darmin Nasution, the weak growth was due to the low credit demand because business community avoids taking on new investment.
Despite the cut in loan interest rate, Darmin conceded that it was not the main concern of credit demand since business people also take into account the economic situation.
In the past, he said, if the business world projected about the promising economy, people would care for investment.
He is looking forward to a boost in credit demand by 2010 due to the bettering economy. The 2010 economic growth is figured to hit 5.5 percent, which will allow investment and credit to improve.
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Translated by: Bonardo Maulana Wahono
