"Next year, we hope to cut the contribution of foreign exchange credit to less than 10 percent."Surabaya, East Java (ANTARA News) - Indonesia`s largest lender Bank Mandiri said it restrains growth of its credits in foreign exchange to maintain liquidity amid global uncertainties.
"In addition, Bank Indonesia has no regulation yet on credits in foreign exchange," Sentot A Sentausa, the risk management director of the state bank said.
Therefore, it is necessary for banks to be more selective in extending credit in foreign exchange such as import credits, Sentot said here on Thursday.
He cited said companies operating in infrastructure sector needs many components with imported basic materials.
This year credits in foreign exchange account for only 14 percent of the bank`s new credits with 84 percent in rupiah, he said.
The contribution of credits in foreign exchange fell from 21 percent early this year, he added.
"Next year, we hope to cut the contribution of foreign exchange credit to less than 10 percent," he said.
Year-to-date , its credit in foreign exchange grew only 0.5 percent and month-to-month credits even shrank 0.4 percent in August.
The policy is to guarantee healthy banking performance, as although the impact of the global crisis seems to be insignificant on the economy in general, it is already real in exports, he said.
He said in short term, business in foreign exchange credits is more profitable, but banks need to be more careful in considering long term effect.
(Uu.AS/H-ASG/H-YH)
Editor: Priyambodo RH
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