BI Maintains Benchmark Interest Rate, Apindo: Economy More Conducive
Thursday, 17 October 2024Chairman of the Indonesian Employers Association (Apindo), Shinta Widjaja Kamdani, supports Bank Indonesia's decision to maintain the benchmark interest rate, or BI Rate, at 6%.
According to her, this move keeps Indonesia's economy stable during the transition of government and amidst global uncertainty.
"We support BI's decision because it is prudent and conducive to economic growth," Shinta told Media Indonesia on Wednesday (16/10).
The BI decision is also seen as realistic, given the rising external pressures, particularly regarding the escalating geopolitical conflict in the Middle East, and the weakening of the rupiah against the U.S. dollar due to more positive projections of the U.S. market performance.
"Moreover, in the coming weeks, domestically, we will be undergoing a leadership transition, which could create excessive market volatility and speculation," Shinta explained.
Looking ahead, Shinta sees room for BI to lower the BI Rate by the end of the year, in line with projections of the U.S. Federal Reserve lowering the fed funds rate (FFR) twice this year.
"We believe BI will continue to strive to lower interest rates by the end of the year if the monetary risks are also reduced," she concluded.
