Saturday, January 22, 2011

BI: 2011 Credit Growth Slows




Indonesia News Times ~ Governor of Bank Indonesia estimate Nasution bank lending will grow slower in 2011 this. Authorities target credit growth reached 19-21 percent in 2011.
"These projections taking into account the potential risk of rising commodity prices and inflation pressure as well as non-bank financing," Nasution said in Jakarta on Friday, January 21, 2011.
Whereas in December 2010 and then, the central bank to target growth in the range of 20-23 percent. In 2010, perbankkan credit growth target of 0.8 percent over the 22.8 per cent. The biggest allocation of credit to SMEs more than 50 percent.
The price of coal, currently at U.S. $ 136.30 per metric ton based on weekly prices at Newcastle from the previous week at $ 129. The price of crude palm oil or crude palm oil (CPO) is also experiencing rising trend until it reaches U.S. $ 1,222 per ton.
In addition, the slow disbursement of credit was also associated with increased ratings on Indonesia's debt investment grade by rating agencies.
Companies tend to choose cheaper financing through capital markets such as bonds. Although interest rates in 2010 survived at 6.5 percent but interest rates do not fall evenly.
Indonesia Financial Stability Index of 1.75 is much lower than when the crisis from 2007 to 2008 amounted to 2.43.

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