Ivan Dasa Saputra – The Indonesian Chamber of Commerce and Industry says the economy is unlikely to grow by 6.7 percent next year as traditional hurdles such as high interest rates, ailing infrastructure and energy supply crises remain stumbling blocks to growth.

The government has forecast the economy to grow by 6.7 percent in 2012 after expanding by 6.5 percent this year, on the back of strong consumer spending and a rise in investment.

"Kadin [the chamber] predicts that economic growth in 2012 will be 6.2 percent to 6.4 percent," the group's chairman, Suryo Bambang Sulisto, said at a forum in Jakarta on Wednesday.

Suryo said banks were still charging high interest rates to companies, especially micro to medium-sized businesses. The central bank's key interest rate is now at 6 percent, its lowest level ever, following cuts in October and November.

The bank cut its key rate by 25 basis points in October and 50 basis points in November. It said it wanted to encourage commercial lenders to lower their lending rates so more companies would be able to borrow money and expand their businesses.

Lending rates for consumers, working capital and investment hover at 11 percent to 13 percent, according to the bank's data.

The deputy chairman at Kadin for infrastructure, construction and property, Zulkarnain Arief, said the government's Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI) was not being implemented efficiently.

"The MP3EI did not run well in 2011 due to many constraints. If these aren't tackled in 2012, I doubt the plan can be started," he said. Suryo also said that the government was not offering sufficient incentives to the manufacturing sector, which employs millions of workers.