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View all search resultsAsian shares edged higher on Monday as investors waited nervously to see whether the Bank of Japan (BOJ) would defend its super-sized stimulus policy at a pivotal meeting this week, while a holiday in US markets made for thin trading.
The governor of Bank Indonesia says businesses were in a “wait-and-see” mode as a trade war has increasingly muted global demand and trade, causing economic slowdowns in large countries like the United States, China, Japan, Germany, the United Kingdom and India. Geopolitical risks stemming from Brexit uncertainties have also weighed down growth prospects, he added.
Only a higher pace of bold structural reforms would make the monetary easing more effective in stimulating investment to consequently propel higher economic growth. Unfortunately, this seems to be the weakest point of President Joko “Jokowi” Widodo’s administration.
The cut in the central bank’s benchmark rate is a response to developments in the domestic and global economies, which are plagued by uncertainty. Within the domestic scope, Indonesia’s annual economic growth remains stagnant at around 5 percent.
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