REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) urged banks to reduce its credit next year in order to make healthier economy. Governor of BI, Agus Martowardojo said that credit growth projection next year was expected in range of 15 to 17 percent. It is in line with growth of third party fund. Global economy has not recovered and the increase in interest rates must be anticipated.
"We hope banks to actively adjust its business plan in credit growth target next year, so it is consistent with our efforts to manage healthier economy. So, please adjust your credit target," Martowardojo said recently.
Former Minister of Finance estimated that economic prospect in 2014 was still in consolidation as the recovery process of current account deficit correction has not been completed. An increasingly restrained import on slow domestic economy is expected to support current account improvement.
BI estimated next year economic growth in range of 5.8 to 6.2 percent. It may change if global recovery stopped again as it happened in 2013. Inflation rate in 2014 is projected to be in 4.5 percent and plus or minus of one percent.
In midterm perspective, global economy is projected to grow about 3.9 percent in 2015-2018. It is in line with US economy improvement. Indonesia's economic growth is expected to reach 6.5 percent in 2018.
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