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Jakarta Post

Banks unreliable for business

  • Mustaqim Adamrah

    THE JAKARTA POST

JAKARTA   /   Wed, February 25 2009   /  10:58 am

The banking sector is no longer reliable in helping to boost manufacturing industry during these current hard times, says the Industry Minister. Industry Minister Fahmi Idris said the likely drop in the growth of bank lending this year, forecast at 15 percent, would affect the manufacturing sector significantly. “Banks usually allocate their lending reserves conservatively. Such a situation indicates that the Indonesian banking sector no longer helping businesspeople to   build their businesses during this crisis situation,” he told reporters at his office. Fahmi responded Tuesday to a recent report by Bank Indonesia (BI) which forecast that lending would only grow by about 15 per-cent this year, a drop to half of last year’s 29.4 percent increase in bank lending, due to the global financial crisis. Therefore industrial players should “at least stay alive ...