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View all search resultsBank Indonesia's (BI) decision to raise the BI Rate to 5.75 percent may help defend the rupiah, but someone will ultimately have to pay the price. Increasingly, that burden appears to be falling on Indonesia’s middle class.
The House of Representatives has approved the Bill on Amendments to Law No. 4/2023 on Financial Sector Development and Strengthening (UU P2SK). According to Finance Minister Purbaya Yudhi Sadewa, the amendments cover 17 key areas, including a provision that would authorize state asset fund Danantara to issue special bonds. The proposed changes have also reignited concerns about a potential erosion of central bank independence.
Newly released data reflects a normalization in consumer sentiment after heightened demand earlier in the year driven by the Idul Fitri holiday period, and tighter monetary policy may weigh on consumer confidence and retail sales in the months ahead.
Bank Indonesia (BI) has increased the benchmark interest rate outside the routine schedule to shore up the rupiah after a hefty hike at the last Board of Governors' meeting and other measures failed to arrest the currency’s depreciation.
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