Indonesian stocks declined, with the benchmark sliding for a

Indonesian stocks declined, with the benchmark sliding for a fourth day. Bank Danamon led lenders lower after the government said interest rates will fall at a slower rate this year, raising concern loan growth will slow.

Pharmaceutical companies dropped on concern a weaker rupiah will make it more expensive to import raw materials. PT Kalbe Farma, which buys more than 90 percent of materials overseas, led declines.

The Jakarta Composite Index fell 6.712, or 0.9 percent, to 752.932 at the 4 p.m. close in Jakarta. The index lost 4.2 percent this week, paring its gain this month to 8.8 percent.

Bank Danamon fell Rp 25, or 1.1 percent, to Rp 2,275. Bank Central Asia, the nation's third-biggest lender by assets, lost Rp 25, or 0.7 percent, to Rp 3,850.

Minister of Finance Boediono told reporters at a conference in Bali interest rates would fall at a slower rate in 2004. The yield has fallen 4.83 percentage points in 12 months. The yield on the benchmark one-month central bank bill fell for a seventh week on Wednesday, dropping 20 basis points to 7.86 percent, the lowest since the bills started in July 1998.

Bank Mandiri, the country's largest bank by assets, fell Rp 25 rupiah, or 1.9 percent, to Rp 1,300. The government said it plans to sell 10 percent of its 80 percent stake in the bank before the end of June. The stake in Mandiri will be offered to the public, said Bacelius Ruru, Secretary to Office of the State Minister of State Enterprises.

Kalbe Farma tumbled Rp 50, or 9.5 percent, to Rp 475. PT Tempo Scan Pacific, a smaller rival, fell Rp 50, or 0.8 percent, to Rp 5,900. The rupiah was set for its third weekly decline. It fell 0.3 percent to Rp 8,460 as of 4:17 p.m. in Jakarta. -- Bloomberg