Economy Does Not Depend on Top Companies:BI

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VIVAnews - Bank Indonesia and the National Statistics Agency expect that the inflation rate can be slowed down. Should there be lower inflation rate, the Bank Indonesia (BI) Rate may have another cut, which will result in lower lending rate. Eventually, lending rate may reach its one-digit level.

BI governor Darmin Nasution said if lending rates decrease, small- and medium-sized entrepreneurs will have more confidence to propose loans to banks. Therefore, the Indonesian economy will not fully depend on top companies.

"The economic growth has always been six percent. If the small- and medium-sized enterprises can do better, the economic growth may hit seven percent," said Darmin today, Nov 26.

Given the situation, Bank Indonesia collaborate with the National Statistics Agency to sign a memorandum of understanding on statistical data exchange.

According to Darmin, the statistical data, especially in the real sector, is needed by Bank Indonesia because inflation rate and the real sector are interconnected with the financial and monetary sector. "Bank Indonesia also deals with inflation rate and the real sector because they affect lending rates," he said.

The MoU proves that Bank Indonesia has concerns over the real sector. "Banks have been regarded as not having concerns over the real sector," he said.

VIVA/Economy Does Not Depend on Top Companies:BI