Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Andin Aditya Rahman
Following the continued decline of the IDR exchange rate against the USD, Bank Indonesia (BI) has responded by repeatedly increased its rate which reached 7.25 percent on 12 September.
The increasing BI rate was questioned by the House of Representatives during a meeting between the House, the Ministry of Finance, BI, and the National Development Planning Boardin Jakarta on Monday.
Even though BI asserts that increasing its rate is bitter but necessary, Dolfie O.F.P., Head of the Budget Division at the House of Representatives questioned BI’s actions in almost consecutive increases in its rate.
Dolfie said that the BI rate increase does nothing for the IDR and the Indonesian economy as a whole and will only impact negatively on sectors that have to deal directly with BI rate increases.
“What does it do to the IDR and the Indonesian economy? Don’t just increase the BI rate because doing so will impact on sectors that are related to that policy,” he asserted during the meeting.
In response, Hendar, Deputy Governor of BI, explained that the BI increases were to counteract current account deficits and inflation.
These issues are at the root of the current problems faced by the Indonesian economy and pose a serious threat of causing even more mayhem.
“Currently the main problems of the Indonesian economy are current account deficits and inflation. These two things have forced us to increase the BI Rate,” stated Hendar.
Current account deficits and inflation are the two main causes of the declining exchange rate of the IDR, continued Hendar.
Increasing the BI Rate primarily aims to suppress inflation and domestic demand which is hoped will prevent further increases in current account deficits.
(hot/kc)
Fitri Novia Heriani, Andin Aditya Rahman
Following the continued decline of the IDR exchange rate against the USD, Bank Indonesia (BI) has responded by repeatedly increased its rate which reached 7.25 percent on 12 September.
The increasing BI rate was questioned by the House of Representatives during a meeting between the House, the Ministry of Finance, BI, and the National Development Planning Boardin Jakarta on Monday.
Even though BI asserts that increasing its rate is bitter but necessary, Dolfie O.F.P., Head of the Budget Division at the House of Representatives questioned BI’s actions in almost consecutive increases in its rate.
Dolfie said that the BI rate increase does nothing for the IDR and the Indonesian economy as a whole and will only impact negatively on sectors that have to deal directly with BI rate increases.
“What does it do to the IDR and the Indonesian economy? Don’t just increase the BI rate because doing so will impact on sectors that are related to that policy,” he asserted during the meeting.
In response, Hendar, Deputy Governor of BI, explained that the BI increases were to counteract current account deficits and inflation.
These issues are at the root of the current problems faced by the Indonesian economy and pose a serious threat of causing even more mayhem.
“Currently the main problems of the Indonesian economy are current account deficits and inflation. These two things have forced us to increase the BI Rate,” stated Hendar.
Current account deficits and inflation are the two main causes of the declining exchange rate of the IDR, continued Hendar.
Increasing the BI Rate primarily aims to suppress inflation and domestic demand which is hoped will prevent further increases in current account deficits.
(hot/kc)