Loan Disbursement Not Affected by Sanctions
Monday, 11 December, 2006 | 16:41 WIB

TEMPO Interactive, Jakarta: State-Owned banking circles have asked that Bank Indonesia (BI) impose no disincentives against banks having low loan disbursements.

Sigit Pramono, Head of the Alliance of State-Owned Banks, said that sanction imposed on banks would not trigger loan disbursements.

According to Sigit, who is also Managing Director of PT Bank Negara Indonesia Tbk, the main key for banks in disbursing loans lies in the government's incentives to the real sector, which is still not yet moving up to now.

“I think it's better that there is no disincentive or penalties. Banks, if they do not disburse loans, are already punished themselves. Their revenues will decrease,” said Sigit.

Suryani Ika Sari