DENPASAR – Companies and issuers are required to more aggressively issuing bonds. It is intended that the bond be competitors financing through bank credit.
Director of PEFINDO, Salyadi Saputra said, although this year is expected issuance increased to Rp120 trillion, but the fact of companies or issuers in Indonesia prefer bank credit as a funding source.
Project bonds InfrastrukturSoal Alternative Financing Bonds, RI Still Lagging Behind MalaysiaPenerbitan believed Bonds Reach Rp120 Trillion
He added that the percentage of fund-raising through the issuance of bonds is only 7.5 percent of total outstanding bank credit.
If with these conditions banks will have a bargaining position to determine bank interest rates and make higher interest rates, he said in Denpasar, Bali, on Friday (30/09/2016).
He revealed, to push down lending rates, the company or the issuer may choose as a competitor issuance of bank credit.
If we had a choice of bonds, so that we can compete again with the banks to arbitrarily specify baseball banking interest rates, he added.
It supports the government’s desire to encourage lending rates below 10 percent or single digit
Loan interest rate slow downs while deposits fell, because there are no competitors, he said. (DNG)