Keep the Investment Climate, Chamber of Commerce and Industry (Kadin) Hopes The Government Is Not Increasing Interest Rates

By : Ridwan And Aldo Bella Putra | Friday, February 23 2018 - 18:00 IWST

Ketua Umum Kamar Dagang dan Industri Indonesia (Kadin) Rosan Perkasa Roeslani (Foto: Ist)
Ketua Umum Kamar Dagang dan Industri Indonesia (Kadin) Rosan Perkasa Roeslani (Foto: Ist)

INDUSTRY.co.id - Jakarta, the Indonesian Chamber of Commerce and Industry (Kadin) expressed its hope that Bank Indonesia will be able to maintain interest rates and not raise it for the foreseeable future.

This is in line with government measures that want to spur the private sector to contribute to economic growth.

Chairman of the Indonesian Chamber of Commerce and Industry, Rosan P. Roeslani assessed that if interest rates of banks rose there is a concern for entrepreneurs to withhold investment. Therefore, higher interests rates will make employers tend to save money or divert funds to portfolios that are not risky.

"Later when interest rates are higher, the tendency of people to save money in the bank than trying," Rosan said in Jakarta (23/1/2018).

In addition to holding money to invest, it also affects business actors in boosting production because high interest rates will add to the cost burden especially for the sector of Small and Medium Enterprises (SMEs) is increasingly difficult to grow its business if the interest rate of the bank raised.

"As interest rates raise, the cost for entrepreneurs will be high, especially as we are required to be more competitive, our goods, especially in boosting exports," he said.

He hopes, Bank Indonesia (BI) is able to keep the current interest rate of 4.25 percent so that national banks can apply the same thing on their credit interest.

"Want me to want this interest rate do not go up, especially for small and medium business is already there is a policy from the government also If the business world do not want to go up," he hoped.

Based on the Board of Governors Meeting (RDG) on 14-15 February 2018, Bank Indonesia decided to keep the BI 7-day Reverse Repo Rate fixed by 4.25 percent with the Deposit Facility rate remaining 3.50 percent and the Lending Facility fixed at 5.00 percent. These provisions apply as of February 19, 2018.

The policy was taken as a consistent effort to maintain macroeconomic stability and financial system and contribute to the recovery of the domestic economy. Bank Indonesia sees that the easing of monetary policy has been sufficient to continue to boost domestic economic recovery momentum.

In addition to wanting to keep interest rates unchanged, Rosan also hopes that inflation will be maintained as it is directly related to rising or falling interest rates.

He also again reminded that the government can keep interest rates and create a conducive climate to run the business.

News Comment

Today's Industry

N-Tron® Series NT5000

Kamis, 02 Februari 2023 - 12:25 WIB

New Gigabit Ethernet Switches From Red Lion Simplify Configuration With Robust Performance and Security Features

N-Tron® Series NT5000 gigabit industrial switches set a new standard for performance, reliability and ease of use, with security features designed to keep networks connected and protected Red…

PT Inocycle Technology Group Tbk (INOV)

Kamis, 02 Februari 2023 - 11:23 WIB

Rising Trends in Post-Covid Use of Recycled Products Benefit INOV

PT Inocycle Technology Group Tbk (INOV), an issuer engaged in recycling plastic bottle waste (PET) into Recycled Polyester Staple Fiber (RePSF), optimistic that its sales in 2023 will continue…

PT Autopedia Sukses Lestari Tbk (ASLC)

Rabu, 25 Januari 2023 - 09:30 WIB

ASLC Successfully Surpasses 2022 Used Car Sales Target via Caroline.id

PT Autopedia Sukses Lestari Tbk (ASLC), a company engaged in used vehicles auction and trading of used cars, succeeded in selling 2,481 units of used cars through used car dealers under its…

A woman is paying her attention to the Jakarta Composite Index board movement. (Document of INDUSTRY.co.id)

Kamis, 05 Januari 2023 - 22:29 WIB

New Economic Board, GOTO Share Moves Closer to Global Indices

The presence of the New Economic Board on the Indonesia Stock Exchange (IDX) brings many benefits to PT GoTo Gojek Tokopedia Tbk (GOTO). One of them is getting closer to the shares listing of…

PT Alkindo Naratama Tbk (“ALDO”)

Senin, 19 Desember 2022 - 23:51 WIB

ALDO Aims 2023 Sales to Increase More Than Double

PT Alkindo Naratama Tbk (“ALDO”), a listed company engaged in the integrated paper and chemical business are optimistic that the Company's performance in 2023 will improve, in line with…