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View all search resultsBank Indonesia reveals that Rp 2,372.1 trillion in approved bank loans remains unused as of August, warning that sluggish credit expansion, with just 7.56 percent year-on-year growth, could weigh on GDP growth.
The government and the central bank are in a tight spot as global uncertainties shrink the room for measures that support growth amid the rupiah depreciation, US tariffs and higher inflation expectations, but an expansionary approach and good policy communication will go a long way toward reducing future risks.
A weak rupiah exchange rate limits Bank Indonesia’s scope for further monetary policy easing at this time, but the central bank is pinning its hopes on the appeal of Indonesian stocks and bonds to lift the currency’s worth.
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