Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Andin Aditya Rahman
The price increase of subsidized fuel prices is increasing inflationary pressures, says Tony Prasetiantono, an economist from Gadjah Mada University. According to Tony, the price increase has caused difficulties for banks in stemming the outgoing flow of funds.
“Many people are withdrawing their money and moving it into US dollars, capital markets or other instruments,” Tony said at the House Secretariat in Jakarta on Wednesday.
As a consequence, as Tony explained, major banks have increased interest rates on deposits. Some are even setting their interest rates higher than the Bank Indonesia rate (BI rate) or the recommended rate ofthe Indonesia Deposit Insurance Corporation.
Due to these circumstance, Tony believes that now is the right time to increase the BI rate to 6.25 percent from its current 6 percent. This increase will help the banking industry to cope with the rising inflation.
In response to Tony’s view, Harry Azhar Azis, Deputy Chairman of Commission XI at the House of Representatives, commented that such recommendations must be first compared with data on the implications of increasing the BI rate. For example, the impacts of such an increase to the BI rate on foreign capital outflows and credit growth.
“A comparison must be done both ways, what are the impacts if BI does not agree to increase their rate? It must be compared,” he emphasized.
According to Harry, the impacts of such a rise in the BI rate on micro, small, and medium businesses must also be assessed, not to mention the impact that this might have on job creation.
“There should be analysis on the implications. Monetary policies cannot be presumed. Any decision should be able to be accounted for,” concluded Harry.
(hot/kc)
Fathan Qorib, Andin Aditya Rahman
The price increase of subsidized fuel prices is increasing inflationary pressures, says Tony Prasetiantono, an economist from Gadjah Mada University. According to Tony, the price increase has caused difficulties for banks in stemming the outgoing flow of funds.
“Many people are withdrawing their money and moving it into US dollars, capital markets or other instruments,” Tony said at the House Secretariat in Jakarta on Wednesday.
As a consequence, as Tony explained, major banks have increased interest rates on deposits. Some are even setting their interest rates higher than the Bank Indonesia rate (BI rate) or the recommended rate ofthe Indonesia Deposit Insurance Corporation.
Due to these circumstance, Tony believes that now is the right time to increase the BI rate to 6.25 percent from its current 6 percent. This increase will help the banking industry to cope with the rising inflation.
In response to Tony’s view, Harry Azhar Azis, Deputy Chairman of Commission XI at the House of Representatives, commented that such recommendations must be first compared with data on the implications of increasing the BI rate. For example, the impacts of such an increase to the BI rate on foreign capital outflows and credit growth.
“A comparison must be done both ways, what are the impacts if BI does not agree to increase their rate? It must be compared,” he emphasized.
According to Harry, the impacts of such a rise in the BI rate on micro, small, and medium businesses must also be assessed, not to mention the impact that this might have on job creation.
“There should be analysis on the implications. Monetary policies cannot be presumed. Any decision should be able to be accounted for,” concluded Harry.
(hot/kc)