New Regulation, Banks to Focus on Real Sector

VIVAnews - Bank Indonesia (BI) prohibits banks to finance gold pledging aiming at speculations. 

According to analyst of gold trading and investment, Mulyadi Tjung, gold pledging is in fact not illegal. 

"From the point of view of BI, the central bank avoids the possibility of gold flooding which may not be claimed should gold prices fall," he told VIVAnews. 

The new BI regulation sets maximum limit of financing at Rp100 million per customer with loan to value ratio of 80 percent. 

The regulation emphasizes banks' focus on loan disbursement to the real sector.  

"Can you imagine Rp12 trillion worth of fund channeled for gold pledging? It would do micro, small and medium-sized enterprises good, for the effect on the economy would be better," he said.