President Yudhoyono asks banks to boost economic growth with own equity

Jakarta (Antara News) - President Susilo Bambang Yudhoyono has asked national banks to boost economic growth with their equity by providing credits to productive sectors and micro, small and medium businesses (UMKM).

"All financial and capital resources like bank credits should take advantage of the construction of power plants, trasportation and infrastructure. Without these three elements, the economy will not run well, and reduce competitiveness and investment," he said here on Wednesday.

In addition, the national banks should also support the development of investment, boosting exports, industries, agriculture and services as well as the real sector for a substantial contribution to economic growth.

"I am calling on you at Bank of Indonesia and leaders of other banks to make available your credits to finance economic growth. For increasing their equity, national banks should support the development of micro, small and medium businesses," he said.

Economic development using one`s own equity, the president added, should be made as an ideology in the economic development of the country for the sake of the people.

"Economic development with equity should be made an ideology, a choice, and paradigm which will enable us to make progress with the participation of the people," he said, adding that there was no use to pursue a 6-7 percent growth if it is only designed to strengtheng the conomic fundamentals," he said.

On the occasion, the president asked the national banks to carry out five points, including increase in the channeling of credits to eligible applicants.

The head of state wished the banks would channel their credits to productive sectors in addition to maintaining and increasing bank intermediation.

The president called for efforts to overcome incorrect long-and-short term financing between national banks and non bank financing institutions which required guidance.

In addition, decisions on channeling indirect credits should not be made in legal and criminal cases such as in non performing loans. (*)
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