The Indonesian Chamber of Commerce and Industry (KADIN) has sought the government's help in pressuring commercial banks to slash the interest rates they charge on loans to less than 10 percent in a bid to spur economic growth, a media reported here on Friday.

The statement was made as the country's central bank had cut its benchmark interest rate by 75 basis points to 6.0 percent in Sept. and Oct. last year to help fuel economic growth amid the weakening of the global economy.

With the current average level of lending rate of more than 10 percent, it had posed problems for firms seeking to borrow funds, said Suryo Bambang Sulisto, chairman of the body known as Kadin, the country's most powerful lobbying group.

"We hope that the government can help reduce the lending rate. "If possible, it should be cut to 8 percent," he was quoted by the Jakarta Globe as saying.

Suryo said the Kadin would submit its proposal to the central bank soon.

He added that a cut in lending rates would not hurt profits of the country's banks, where he said the net interest margins remained among the highest in Southeast Asia.

Net interest margins, the difference between the interest rates banks charge their customers and the interest they pay them, were typically around 5 percent in the region.

Purbaya Yudhi Sadewa, the chief economist at the Danareksa Research Institute, said Kadin's request was unrealistic.

"Lending rates in Indonesia are pretty much set by the supply and demand in the market. And in some cases, banks are awaiting each other's signal (regarding) raising or cutting their rates," Purbaya said.

The central bank has called on commercial lenders to trim lending rates and improve operational efficiency by obliging them to include targets for both objectives in their business plans.

In contrast, Malaysian lenders charge an average of 6.5 percent interest, while their country's benchmark interest rate is 3 percent. Lenders in the Philippines charge about 5.7 percent interest, while the benchmark rate there is 4.5 percent.

Indonesia's economy grew by 6.5 percent in 2011, according to data from the Statistic Bureau and President Susilo Bambang Yudhoyono, and many forecasts are to exceed more than 6 percent this year.