Businesses Left High and Dry as Banks Cut Down on Loans

The flow of funds in the real sector is drying up. High interest rates combined with low purchasing power have prompted banks to shy away from loans and pivot to risk-free securities.

Bisnis, JAKARTA—As President Joko "Jokowi" Widodo’s term approaches its end, lingering issues remain in two vital sectors: the real sector and the financial sector. The former faces a dry spell of capital flow, while the latter is experiencing low loan demand.

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