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View all search resultsAs the administrative boundaries of Indonesia's urban areas blur, millions of people are having to pay a silent "metropolitan tax" that is measured not in currency but in hours of their lives surrendered to daily commutes.
Bank Indonesia’s decision to raise its benchmark BI Rate by 50 basis points to 5.25 percent marks a clear shift from supporting growth to defending macroeconomic stability as the rupiah comes under pressure. But the move also exposes a deeper dilemma: The central bank must stabilize the currency while sustaining growth, even as expansive fiscal intervention weakens monetary policy effectiveness and raises questions over its independence.
The job creation engine is showing signs of strain. Despite steady economic growth and rising investment, businesses are increasingly reluctant to expand their workforce, raising concerns over the economy’s ability to absorb millions of new job seekers each year. The emerging disconnect between growth and employment is no longer cyclical but structural, pointing to deeper challenges in how investment, labor policy and skills development are aligned.
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