Abstract:
This study was conducted Central Bank (Bank Indonesia) and the government Public Banks wheers located in the city of Pekanbaru, time of slogis since June to December 2012. The purpose of the implementation this study was to determine the effect of Interest Rate Demand Credit in Small Business Investment at Government Banks.
The data used are secondary from agencies and institutions associated with this study as Bank Indonesia, Government Banks, and the Central Bureau of Statistics in Pekanbaru.
The influence of interest rates on the level of demand for investment in small business investment credit at commercial banks in Pekanbaru. Influence during this period was positive that if interest rates rise, the amount of investment small business investment credit demand is likely to increase. This is caused by the presence of several factors that influence the government policy to resolve the issue of foreign exchange speculation and government policies imposed tight monetary policy to address the economic conditions that could heat up, and vice versa when the interest rate small business investment fell, the number of credit requests small business investment will decline. This is caused by the presence of several factors that influence the adjustment of government policy in the open market and government policies to encourage lower interest rates monetary Securities Indonesia (SBI) and Money Market Securities (SBPU).
The results obtained in this study concluded that the interest rate affects the demand for loans small business investment in Commercial Bank Pekanbaru.
