Overheating Economy Still haunted RI

JAKARTA - Bank Indonesia (BI) said today overheating the economy continues to haunt Indonesia. Therefore the Central Bank will continue to help maintain economic growth to avoid overheating.

BI Deputy Governor Hartadi Sarwono explained in counteracting overheating is one of them is to encourage running to the real sector to build production capacity.

"Well we shall see, the credits which are dangerous and will be directed to sectors that build production capacity in maintaining the economy," said Hartadi told reporters interrupted the celebration of the 58th anniversary of the BI in BI Building, Jakarta, Friday (1 / 7 / 2011).

Furthermore, he explains it becomes very important, do not get more credit for running consumer credit, which becomes dangerous because it does not add to national production capacity.

"It was seen running to where the credit. Now we shall see, the credits which are already dangerous and will be directed to sectors that build production capacity," he added

He added the increase of production capacity is very necessary because it sustains the economic growth target could be achieved without overheating occurs. So the magnitude of demand can be met by supply availability.

"The danger of overheating is always there if economic activity and economic growth is running too fast rather than economic capacity. That is, if demand faster than supply, that we have to guard," he explained.

He added that currently the government has initiated programs of infrastructure development in increasing production capacity, such as the Masterplan Economic Development Acceleration and Expansion of Indonesia (MP3EI).

"So we look to see investments of each corridor. Well if it's a good production capacity, economic goals would be achieved seven percent would not be overheating. But if not 6.5 percent of it was rocking," he concluded.