Apindo Asks BI Not to Raise Interest Rates
Tuesday, 16 July 2024
The Indonesian Employers' Association (Apindo) has requested that Bank Indonesia (BI) not raise the benchmark interest rate or BI Rate at the BI Board of Governors Meeting tomorrow, Wednesday (July 17). At the June BI Board of Governors Meeting, BI maintained its interest rate at 6.25 percent.
Shinta acknowledged that Indonesia's economic situation is indeed volatile, prompting BI to continue its interventions. "Especially concerning the rupiah and other related conditions. Now, it appears that (the results of the intervention) are starting to show. So our hope remains the same," she said.
According to Bloomberg data today at 1:37 PM WIB, the rupiah weakened by 29.50 points or 0.18 percent to a level of Rp 16,199. The rupiah has weakened to the level of Rp 16,000 since the Lebaran holiday.
Additionally, Shinta said the global economic situation is also out of control. She believes that global economic uncertainty has caused the US interest rate or Fed Fund Rate to remain at its highest level for an extended period, or "higher for longer."
"We must consider the global conditions affecting the Fed Rate. The issue lies with the Fed Rate (remaining high)," Shinta said.
Previously, Bank Indonesia Governor Perry Warjiyo urged the public not to be confused or surprised by the movement of the rupiah exchange rate. He said the rupiah remains stable and will continue to improve.
"The strengthening of the rupiah exchange rate is influenced by the monetary policy mix adopted by Bank Indonesia to mitigate the spillover effects of global uncertainty," he said.
source : https://kumparan.com/kumparanbisnis/apindo-minta-bi-tak-lagi-naikkan-suku-bunga-238iCWkUGQ2/full
