Fighting inflation<\/p>\n
The increase in Bank Indonesia's promissory notes (SBI)
\ninterest rates has spawned an increase in interest rates on bank
\ndeposits. This is a measure the government is compelled to take
\nfor the purpose of drawing circulating money back into the
\nbanking system, thereby repressing inflation and strengthening
\nthe rupiah.<\/p>\n
Nevertheless, playing the SBI card is not the ideal means for
\ncontrolling inflation, since inflation also relates to the
\nprocess of production of goods and services and to industrial
\ndevelopment priorities. Also not to be overlooked is that extra
\nmoney is created by the monetary authority and by private
\nbusiness.<\/p>\n
We hope good coordination can be established among the
\nministers concerned so that inflation can be controlled in a more
\nconsistent and comprehensive manner. So long as the efforts to
\ncontrol inflation must rely on the monetary sector only, they
\nwould be only temporary in nature. Given that the situation at
\npresent is worse than it has been in the past, coordination must
\nbe established, even though that might be difficult to achieve.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fighting-inflation-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }