Joko pushing for lower bank lending rates

Jakarta

INDONESIA'S President, Joko Widodo, will seek to encourage reductions in bank lending rates and fuel prices as part of a package of policy reforms due to be announced next week, the chief economics minister said on Friday.

But the central bank governor cautioned that the weak rupiah, currently trading at 17-year lows versus the US dollar, might make it risky to lower their interest charges.

"(Banks) also have to consider expectations of (rupiah) depreciation," Bank Indonesia governor Agus Martowardojo told reporters. "Inflation is better - below 7 per cent. Bu…