RR: Increase in Interest Rate Will Add New Problems

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.