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Feeling a Slow Squeeze

Tuesday, November 11, 2008

Banking liquidity is improving and there are now additional funds of around Rp70 trillion. But the flow of credit to consumers is still low and business sectors will soon be hit. The recession is already at the door.

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DURING the last month, Solich Edi has been extraordinarily busy. At the same time as handling the organization and his business, this Chairman of the Central Java Chapter of the Indonesian Chamber of Commerce & Industry (Kadin) has to make time to receive complaints from his colleagues. Businesspeople in the City of Semarang are anxious because banks are starting to be stingy about disbursing credit. "This is creating difficulties for entrepreneur

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