BI Expects Investment to Reach $124B in 2008

Senior Deputy Governor of Bank Indonesia Miranda Goeltom said she expected investment to reach Rp1,165 trillion ($124.6 billion) in 2008 to help meet economic growth target of over 6%, Asia Pulse reported Wednesday (19/12/07).

With this level of investment, banks have bigger opportunities to finance growth, she said at a magazine award ceremony.

"Currently, three fourths of investment is funded by banks," she said.

Conditions in the banking sector were good, she said, with increased loan distribution this year of 24.3%, and probably 25% by year end.

The debt ratio over savings now reached 70%, the highest since the economic crisis of 1998, while the non-performing-loan ratio (NPL) continued to drop, she said.

Inflation was expected to reach between 6.3-6,5% by the end of this year, still within the central bank's target.
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