Banker predicts Indonesia's economy continue grow in 2007

Jakarta (Antara News) - A banker has predicted that Indonesia`s economy would continue to grow in 2007 following the lowering six times of Bank Indonesia`s reference rate by 250 base points and the active expansion of banking credits to customers.

"The sign for improvement in Indonesia`s economy has been seen since the second quarter of this year with the falling of Bank Indonesia`s interest rate and that of the banking credits," Gunawan Geniusahardja, a commissioner of PT PermataBank, said here on Tuesday after presenting a public expose on subbordinate bonds of PermataBank.

He said that the improving economy should be supported by directing state expenditure on the production sector so that the real sector, which so far had been viewed to be stagnant, would develop well.

Besides, the government should also develop good investment climate to attract foreign investors into the domestic market, guaranteed security and improve legal certainty.

Gunawan said that the government should be active in seeking foreign investors from Europe and Asia, including China.

If the European or Asian investors entered the domestic market the economic growth set by the government at 6.3 percent would be achieved or even surpassed, he said.

He said that even though banks still held themselves from lowering the interest rates of their credits, it did not mean that they did not respond Bank Indonesia`s step to lower its rate.

"Banks still wait the appropriate time for lowering the interest rate of their credits," he said.(*)
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