'I'll benefit from interest rate hike'<\/p>\n
Bank Indonesia has several times raised interest rates as part
\nof its attempt to shore up the value of weakening rupiah. The
\nJakarta Post interviewed residents on the policy and its impact
\non their lives.<\/p>\n
Indrarini, 42, works in a audit company in Jakarta. She lives
\nin Lebak Bulus, South Jakarta.<\/p>\n
I personally have no problem with the interest rate hike as
\nthe deposit interest rate is also increasing. I gain from this
\nsituation.<\/p>\n
For some people, especially small-scale business people, the
\npolicy will certainly affect their finances. People who have
\nloans will also experience the same thing.<\/p>\n
But, I guess Bank Indonesia has carefully calculated the
\nimpact of the policy prior to raising the interest rate.<\/p>\n
I believe if the policy at some point causes economic
\ndifficulty in the community, then Bank Indonesia will revise it.<\/p>\n
I don't know whether this interest hike will effectively help
\nstrengthen the rupiah to the level, let's say, Rp 9,000 per U.S.
\ndollar.<\/p>\n
Alverta Mutiara, 23, a university student in Depok. She lives
\nwith her family in Ciledug.<\/p>\n
I think what Bank Indonesia has done -- raising the interest
\nrate -- will have a short-term impact only and I don't think it
\nwill be effective in strengthened the rupiah to its previous
\nlevel against the U.S. dollar.<\/p>\n
It may even cause some businesses to close because they may be
\nunable to finance themselves with such high interest rates. It
\nalso makes it difficult for low-income families to repay their
\nloans.<\/p>\n
Since Bank Indonesia raised the interest rate, I have not seen
\nany significant change in the rupiah's exchange rate to the
\ndollar. Will it have a significant impact? We'll just have to
\nwait and see.<\/p>\n
But, perhaps the rupiah's exchange rate against the dollar and
\nother major currencies would be even lower than its present level
\nif Bank Indonesia had not raised the rate.<\/p>\n
I can only hope that our economic situation will get better
\nsoon. Well, let's just hope and pray. Hopefully this situation
\nwill be over shortly.<\/p>\n
--The Jakarta Post<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ill-benefit-from-interest-rate-hike-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }