BI Rate Will Still Increase, Kadin Asks Entrepreneurs to Anticipate

By : Ridwan And Aldi Firhand. A | Wednesday, June 06 2018 - 21:43 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) - Jakarta, Chamber of Commerce and Industry (Kadin) Indonesia estimates that the interest rate of Bank Indonesia (BI) will still rise.

Currently, BI has twice raised the BI 7 day reverse repo rate by 25 basis points (bps) to 4.75 percent. Businesses are expected to anticipate when interest rates will still go up.

"We appreciate BI, because we know the interest rate is definitely rising, we have predicted it will rise again in the future," said Chairman of Kadin Indonesia Rosan P. Roeslani in Jakarta, Wednesday (6/6/2018).

He added that various external and internal factors pushed the central bank to raise interest rates. Moreover, Rosan admitted, economic developments in the United States (US) to make BI must be careful in managing various risks.

"The Fed Fund Rate is rising this year and next year is still rising again, the yield of US Treasury is up to three percent. For us this policy is anticipated, our cost of fund will go up, that's not a problem as long as the stability is maintained," he explained.

Furthermore, Rosan said the central bank's step to raise interest rates could reduce the volatility of the rupiah. The weakening of the rupiah currency is too deep assessed will burden the investment of entrepreneurs so that the impact will disrupt the economy.

"What BI is doing is good, but it is temporary, it's like yesterday we have started to have fever with rupiah weakening, then given the medicine by BI then the fever is coming down, the short term is very good, but it is not enough," he said.

Rosan said, the interest rate of BI rose is not free from economic conditions at home and aoad. But clearly, he said, the increase would incriminate entrepreneurs from the production cost side, so that potentially rising prices of goods. It hopes the government and business actors can anticipate the condition.

According to Rosan, as long as the rupiah exchange rate does not go up drastically it is a good thing, so that entrepreneurs can plan, and do anticipation in preparing the budget.

"We are looking for a solution to that and indeed the policy is very important, how to harmonize the central and regional policies that have not been aligned," he concluded.

News Comment

Today's Industry

Kementan dan teknologi iradiator

Sabtu, 22 September 2018 - 21:30 WIB

Ministry of Agriculture Utilizes Gamma Iradiator Technology to Encourage Fresh Fruit Exports

South Tangerang - Indonesia as a tropical country has quite high fruit variants. Every region in the country has superior products and has been planted on a fairly large scale. In addition to…

Mentan Amran

Sabtu, 22 September 2018 - 21:00 WIB

Optimistic Minister of Agriculture Indonesia Can Have the Best Training Center in the World

Lembang - Agriculture Minister Andi Amran Sulaiman made a working visit to the Lembang Agricultural Training Center (BBPP) on Thursday (9/21). During this visit, Amran called on the employees…

Mentan Andi Amran Sulaiman, Menteri BUUMN Rini Soemarno, Menteri Desa PDT (Foto Humas)

Sabtu, 22 September 2018 - 20:30 WIB

Take Good Care of Agricultural Production, The Performance of the Minister of Agriculture Amran Asked not to be disturbed

Jakarta - Minister of Agriculture (Minister of Agriculture) Amran Sulaiman is considered to have demonstrated maximum work in maintaining the stock of food availability. Production in the agricultural…

Kepala (BPPSDMP) Kementan Momon Rusmono

Sabtu, 22 September 2018 - 20:00 WIB

Ministry of Agriculture Affirms the Commitment of Farmers' Welfare in the Main Meeting of the KTNA Group

Pangkal Pinang - Ministry of Agriculture affirms its commitment to encourage national food productivity to improve farmers' welfare. The existence of farmer groups is very important to empower…

Jaksa Agung, HM Prasetyo

Sabtu, 22 September 2018 - 19:30 WIB

AGO Appreciates Lombok's Earthquake Fund OTT

Jakarta - Attorney General Muhammad Prasetyo appreciated the performance of the Mataram District Prosecutor's Office, West Nusa Tenggara, who carried out the Lombok earthquake fund capture operation…