INDONESIA TO BRING BANKING RATE DOWN TO SINGLE DIGIT

by Andi Abdussalam

Jakarta, Feb 24 (Antara) - In order to make the country's economy more efficient and competitive as it faces the ASEAN Economic Community, the Indonesian government is formulating steps to bring down banking interest rates to a single digit.          Vice President Jusuf Kalla said banking interest rate must be brought down to give a competitive edge to the Indonesian economy vis-a-vis other ASEAN member countries.          "We have no other way to compete with ASEAN member countries than making our economy efficient," the vice president said on Tuesday (Feb.23).          Kalla acknowledged that low interest rate will lead to fluctuations in the financial market but said on the whole, the economy will become better.          "Overall, the economy will become better. Of course there are some economic sectors that will have to make adjustments," the vice president added.          Chief Economic Minister Darmin Nasution said the government is finalizing steps to lower the lending rate which is still high and a burden on the people.          "We are making every effort so that in one month, the lending rates are lowered and results are obvious by the end of the year. The lending rate would stand at around 9.0 percent," Darmin said on Tuesday.