High Interest Rates of Banking

With the high interest rates that ultimately have an impact on the high cost in the corporate world. The business world is not optimal to increase their competitiveness. When compared to neighboring countries, bank lending rates in Indonesia are too high. This is unfortunate because it affects the financing of SMEs, and the impact of the development of SMEs.

"Mortgage interest rates we were about 11% when compared with Malaysia, which is approximately only 4.7%. When compared to that then we double the interest rate ", said Imam Sugema, the Economic Observer, told reporters in Jakarta, recently.

According to him, the high interest rates that ultimately have an impact on the high cost in the corporate world. The business world is not optimal increase their competitiveness, especially when dealing with foreign industry.

"This happens because they have to pay a relatively high interest rates. It is also no impact on infrastructure development from bank financing, "explained Imam.

Meanwhile, Senior Econom Institute for Development of Economics and Finance (Indef), Didin S. Damanhuri said until now the country's banking industry has not optimally perform local economic development. This makes the area is not optimal for growth.

According to him, the banking industry is still using the centralized system, which defines the funds raised were collected centered but minimal spread to the area. "SME Access to banking or capital markets is still minimal. Still small. Approximately 5% of the SME loan portfolio although banks have 20% ", he said.

Didin also deplore the existence of the banking industry and the capital market is not optimal support and encourage the growth of the overall economy, especially economic development area. There needs to be changes in the industry in order to focus on local economic development.

"I think there should be a change of banking and capital markets. There is no harm in the proposed banking judicial review because there is conflict with the 1945 Constitution ", said Didin.