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Jakarta Post

Lending growth remains healthy despite high interest rates: Bankers

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Tue, November 12 2019   /  01:37 am

Bankers have acknowledged the country’s banks face difficulties reducing their lending rates despite a series of cuts to Bank Indonesia’s (BI) reference rate in recent months, as many banks, especially low and mid-sized banks, still have liquidity problems.However, bankers also claimed that despite the relatively high lending rates, lending growth remained relatively healthy.President Joko “Jokowi” Widodo has called on local banks to gradually lower their lending rates following the cuts to BI’s reference rate so that it is easier for businesses to take out loans. It is hoped that loan growth will revive the country’s sluggish economic growth.The president director of private lender Bank Central Asia (BCA), Jahja Setiaatmadja, said that low-interest rates were not the only way to boost loan growth, pointing out that the double-digit loan growth recorded in 2018 despite BI’s...