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The Dilemma of Interest Rates

Tuesday, March 24, 2009

Indonesian banks are reluctant to lower interest rates on credits as economic slowdown continues.

arsip tempo : 173510506761.

. tempo : 173510506761.

MANY businesses complain of the difficulty of getting working capital. “Even to get Rp3 billion in loans, we have to back the request with a personal guarantee,” says one executive. Eight months ago the same bank he went to offered him up to Rp50 billion in credits.

It’s not a matter of liquidity. Banking indicators published on Bank Indonesia’s website show that third party funds still accounts for much of the deposits with banks, amoun

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