Credit Ratio Target of 70 Percent Difficult to Achieve
Friday, 01 December, 2006 | 15:37 WIB

TEMPO Interactive, Jakarta: The banking circle has assesses that the credit ratio against loan to deposit ratio (LDR) of 70 percent next year will be difficult to achieve. This, according to Secretary General of National Bank Association Farid Rahman, is because the risk of bank credit still causes banks to be reluctant of disbursing credit and saving their funds on the Certificate of Bank Indonesia.

“It seems somewhat difficult (that the LDR target is 70 percent). But, we will still try,” Farid Rachman told Tempo yesterday (11/30).

According to him, the increase of LDR next year will be maximum 10 percent of the average banking LDR this year. This year, the average banking LDR is around 40 percent. “Next year, at least 10 percent will be added. Perhaps, it can be a little more,” he said.

Earlier, Director of the Directorate of Research and Regulation of Banks at Bank Indonesia Muliaman D. Hadad said that the central bank has said that the credit ratio against LDR of next year will be 70 percent.

SURYANI IKA SARI