Fuel Price Increases, Demand Loans Still High

President Director of PT Bank Central Asia Tbk, John Setiaatmadja, said even the price of fuel oil (BBM) subsidy would increase with the range of Rp 1,500, credit will continue to grow. Because the purchasing power will remain high.

"If in 2005 we see a rise in fuel prices was the inflation reached 17 percent. It will be felt and is hitting the credit," John said in a press conference in Jakarta, Thursday (29/03/2012).

For this year, John explains, the impact of subsidized fuel price increase does not create inflation by the year 2005. Fuel price increases proposed by the government Rp 1,500 per liter is expected to reach 7-8 percent inflation.

Historically, according to John, inflation is not great. The reason, Indonesia has been used with single digit inflation. "From about 5-8 percent inflation (Indonesian people) will still have the purchasing power that is still quite high. Moreover, if such Mortgage (Home Loan) or the business world is much more to the middle class, and it still has the ability or purchasing power, "added John.

High purchasing power that can be seen from Indonesia's Gross Domestic Product growth is very impressive. GDP per capita, he said, now it may have reached U.S. $ 3500-3600. That way, even if there is, the effect of fuel price increases but not subsidized by the year 2005.

Meanwhile, the BCA set a target of around 20-22 percent credit growth. Not 30 percent as has been achieved in 2011. John still holds the domestic market will still be good. Purchasing power and credit demand will remain high.

"So of course we do not restrict 20 or 22 percent. As far as possible means that the capital adequacy ratio (CAR) we have enough, our liquidity is sufficient, and to approve the loan policy remained prudent, we will try to maximize the achievement of the loan. But in terms of targets such as previous years we remain conservative to target growth, "added John.