RR: Increase in Interest Rate Will Add New Problems

By : Herry Barus And Aldo Bella Putra | Sunday, July 01 2018 - 22:30 IWST

DR. Rizal Ramli, Ekonom Senior (Foto Dok Industry.co.id)
DR. Rizal Ramli, Ekonom Senior (Foto Dok Industry.co.id)

INDUSTRY.co.id - Jakarta - There is an idiom in Latin saying, "Mens Sana in Corpore Sano" which means that in a healthy body there is a healthy soul. Likewise with the economy of a country, if the economic system is good, then the economic condition will remain healthy, and the "virus" that comes in the form of external factors, such as the impact of the storm of the economic crisis abroad will also have no effect.

According to senior economist, DR. Rizal Ramli (RR), the economic condition of Indonesia is very fragile and easily attacked by the economic crisis, because the current economic team is wrong to take policy and still understand neoliberal.

Rizal Ramli also highlighted the solution of Bank Indonesia to curb the decline in the rupiah against the US dollar by issuing a policy to raise interest rates by the end of this week.

"The policy of raising interest rates now creates new consequences that can further complicate the situation, the economy will contract, and the potential for bad loans will also be higher," said Rizal Ramli while exercising in the arena of Car Free Day Central Jakarta on Sunday / 7/2018).

"The 50 basis point interest rate increase is expected to halt the decline in the rupiah exchange rate, but it could make our economy go backwards, like the title of Warkop DKI movie," said the candidate for President of the People.

Supposedly, continued Rizal Ramli, the government's economic team should help by improving the balance of payments deficit, service deficit, trade deficit and so on.

Various deficits that, said Rizal Ramli, could be a factor that used speculators to further hit the rupiah.

On the other hand, Rizal doubts the ability of the economic team of Joko Widodo's government.

"The warning about the deficits has been made since last year, but the government's economic team always refuted them and said the economy is managed prudently, so why do all the deficits?" Rizal said.

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…