Entrepreneurs Ask BI to Hold Reference Interest Rates at 6.25 Percent
JAKARTA - The Indonesian Employers' Association (Apindo) has asked Bank Indonesia (BI) to maintain the benchmark interest rate or BI-Rate at 6.25 percent at the Board of Governors' Meeting (RDG) on July 16-17, 2024.
The Chairperson of the Indonesian Employers' Association (Apindo), Shinta Widjaja Kamdani, said that currently, business actors need a loose benchmark interest rate policy amidst the global economic downturn.
"If we can, we don't want the BI-Rate to be raised again with conditions like this," he told the media crew at the Coordinating Ministry for Economic Affairs Office, Tuesday, July 16.
Shinta admitted that the current economic situation is indeed not easy for the government because the global economy is still volatile. This will make BI intervene.
"So that, especially those related to the condition of the rupiah and others. Now it seems like this has started. So our hope is always the same," he said.
In addition, Shinta said that global economic uncertainty has made the United States interest rate or Fed Fund Rate at its highest level in a long time or higher for longer.
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“We also have to look at the global conditions that affect the Fed Fund Rate. The problem is the Fed Rate (still high), so we can't just do this for the government. They already know what the position is like and I think the government is taking control,” he said.
Even so, Shinta said BI needs to take further policies to make the rupiah return to around Rp15,000 per US dollar. Because, the current rupiah exchange rate is a burden for the business world.
"So we appreciate the government and BI who continue to try to control the exchange rate, but yes, we must maintain it, if possible at a level below Rp16,000, of course it would be better," he explained.