The stability of the banking industry remained maintained so far as reflected by their Capital Adequacy Ratio which is still high far above the minimum eight percent and their gross Non-Performing Loan which is below five percent.
Jakarta (ANTARA News) - Bank credits until August 2011 grew 24.2 percent year-on-year mostly going to productive economic activities.

Bank Indonesia however continued monitoring the development of credits in several sectors which tend to be consumptive, central bank spokesman Difi A Johansyah said here on Thursday.

He said BI would continue optimizing the intermediary function of banks to support national economic expansion while continuing to maintain the stability of the whole banking system.

He said the stability of the banking industry remained maintained so far as reflected by their Capital Adequacy Ratio which is still high far above the minimum eight percent and their gross Non-Performing Loan which is below five percent.

Regarding inflation BI recorded that it remained under control with the Consumer Price Index (IHK) inflation in August 2011 recorded at 0.93 percent month-to-month or 4.79 percent year-on-year.

He said the IHK inflation is predicted to be lower than expected earlier at the end of 2011.

Inflationary pressures in August came from core inflation linked to the price of global commodities such as gold that is rising as well as the price of other commodities that have risen in line with seasonal factors such as education cost and air transportation service.

Inflation of volatile foods has relatively been controlled in the midst of increasing demand due to Idul Fitri holiday season due to a good maintenance of food supplies.

On the other hand inflation of administered price group has been minimal due to a lack of a government price policy for strategic commodities.

The inflation projections for the group of volatile and administered price commodities until the end of 2011 tend to be lower due to improvement in supply supported by imports and the tendency of the world price of oil to decline.

Various tendencies in the group of volatile foods and administered price commodities are predicted to be able to suppress the overall IHK inflation in 2011, he said.(*)

Editor: Heru Purwanto
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