REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Chamber of Commerce and Industry (Kadin) said the cost of money is still too high in Indonesia.

Bank lending rates for industries are too high compared to interest rates inn other ASEAN countries, deputy general chairman of KADIN Rosan P. Roeslani said.

Rosan said bank lending rate in Thailand is 6.5 percent, in the Philippines 5.5 percent, Singapore 5 percent, Malaysia 4.5 percent and South Korea around 4.2 percent.

"Under such condition we need an alternative sources of funds for industries with lower lending rates and longer term," he said in a seminar on Investment Finance in Industrial Sector.

The existence of such sources of fund would help the industrial sector expand its business and operation, he said.

Based on data from Bank Indonesia, the country's central bank, in 2014, bank credits for the industrial sector reached Rp650.9 trillion or around 25 percent of the total outstanding credits of all Indonesian banks.

The largest credits were for the trading, hotel and restaurant sector, accounting for 30 percent.

"The country's industrial sector would face heavier challenges because of limited sources of competitive finance," he said.

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