'Interest rate increase hits me hard'<\/p>\n
In order to arrest the rapid fall of the rupiah against foreign
\ncurrencies, Bank Indonesia has decided to increase the interest
\nrate of the Bank Indonesia Certificate, a move that forces
\ncommercial banks to raise their interest rates. While the
\ndecision may help shore up the value of the rupiah, it
\ninadvertently burdens people who have to pay installments of
\ntheir bank loans. The Jakarta Post interviews residents to get
\ntheir views on the issue.<\/p>\n
Anggraini, 38, is a resident of Puri Serpong housing complex
\nin Cisauk, Tangerang. He works as a teacher for a private English
\nschool in Bumi Serpong Damai (BSD) housing complex, also in
\nSerpong, Tangerang:<\/p>\n
Of course the rise in interest rates will affect my ability to
\nrepay bank loans. Currently, I pay an interest rate of 17 percent
\nper year, and I am sure the rate will go up.<\/p>\n
I do not know by how many percentage points the interest rate
\nwill go up, but I had been hoping this would not happen.<\/p>\n
Now, I pay a monthly installment of Rp 1 million to the bank,
\nRp 250,000 is to pay back the loan and the remainder is for the
\ninterest.<\/p>\n
I'm planning to look for banks that can offer me a lower
\ninterest rate in order to ease my financial burden. I checked
\nwith several state banks and I learned that they offer an
\ninterest rate of 12 percent only.<\/p>\n
Yudhi, 28, works for a publishing company in Blok M, South
\nJakarta. He lives in Pondok Aren, Tangerang:<\/p>\n
That (the interest rate increase) is a new headache for me. It
\nreally worries me. I don't know what to do to weather the hike. I
\nstill have nine years to go to pay off my loan. This year is my
\nfirst year.<\/p>\n
For sure, the interest rate increase will screw up everything.<\/p>\n
Last month, I dug deeper into my pocket owing to the interest
\nrate increase. The developer said the increase was owing to the
\ndepreciation of the rupiah against the U.S. dollar.<\/p>\n
Unfortunately, we don't know how long we will experience this
\ncrisis. I heard Hurricane Katrina had put the U.S. as well as
\nworld economies under pressure.<\/p>\n
-- The Jakarta Post<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/interest-rate-increase-hits-me-hard-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }