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Food Industry favours Low Interest Rate

3 September 2008 14:07 WIB

TEMPO Interactive, Jakarta:

Food and beverage industry expressed hope that the central bank would retain its interest rate at 9 per cent to stimulate growth in the sector. Thomas Darmawan from the Association of Food and Beverage Producers said on Wednesday, although Bank Indonesia still has the space to increase the rate to curb the high inflation, but the consequences of the action in macroeconomic perspective will be damaging.”

High interest rate will hurt debitors in housing and vehicle sector. The slow growth of industry specifically on food industry was the result of high interest rate, rising energy price, and decline in the public purchasing power. Government according to Thomas must also consider the plummeting oil price.

The 15 per cent rate on credit Thomas said is already very high and burdens the industry, adding that the food and beverage industry growth were at minus 3,43 per cent during the first semester of 2008.

Bank Indonesia Board of Directors Meeting on Thursday will decide whether to maintain or change its rate.

Arif Arianto

 


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