Jakarta, Aktual.com – The government has confirmed that will cut spending in the state budget-2017 Change reached Rp133,8 trillion. This step taken by the government for acceptance of certain countries will not meet the target.
However, with the budget cuts, the government was asked not again issue bonds, so it will still maintain the liquidity of the banking system.
“With the budget cuts, we hope that (the government) do not need to remove the debt securities to cover it (the deficit),” Agus said on the sidelines of an international seminar at the Bank Building, Jakarta, Monday (8/8).
Moreover, indeed, that if the budget cuts coupled with massive government measures that do not issue debt securities will be able to influence the national bank liquidity for the better.
“I think the liquidity is still awake, when the government announced budget cut Rp133 trillion. So spending cuts in the current state of tax revenue is not achieved is still good,” he explained.
Further, Agus asserted, the national banking risk itself is still strong. The indicator is the ratio of capital or capital adequacy ratio (CAR) remained strong, was recorded at 22 percent.
“But indeed, we also understand that my growth was still slow credit recorded below 10 percent, with NPLs (non-performing loans / non-performing loans ratio), which rose to 3.1 percent,” said Agus Marto.
To that end, the central bank also continues to pay attention to and monitor the general condition performance corporation. The reason, as a result of the world economic slowdown pressure is high enough to their performance. So in the end, will depress the quality of corporate debt held by Indonesia.
“So, it (the government does not publish a lot of debt) will create liquidity in the banking awake. However, the central bank will also continue in the market to maintain the liquidity of the national banking system,” said Agus Marto.
To note, LDR (loan to deposit ratio) itself is still quite high at 90 percent. It means that banks are saving a lot of money, but was able to channel the credit for. So what happens the credit rate is still below 10 percent.
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