BNI says it won't meet loan target

BNI says it won't meet loan target

DENPASAR: Bank Negara Indonesia (BNI), the nation's third- largest lender, said it would miss its lending target this year as accelerating inflation and higher interest rates deter customers.

The Jakarta-based lender may lend Rp 11 trillion (US$1 billion) this year, compared with a target of Rp 16 trillion, president Sigit Pramono said on Friday.

The bank cut this year's profit estimate by 17 percent in September after the central bank raised its benchmark rate three times in less than three months.

The bank cannot meet its targets "because inflation may remain high and economic growth may not reach the government's target", Sigit said.

The $258 billion economy may expand about 5.7 percent this year, lower than the government's forecast of 6 percent, President Susilo Bambang Yudhoyono said in November. -- Bloomberg