Recovery is getting clearer<\/p>\n
Several Indonesian economic indicators have improved. Take for
\nexample, the rates of interest, inflation and rupiah exchange.<\/p>\n
Late last week, Bank Indonesia lowered the maximum interest
\nrate of the government's blanket guarantee for third party
\ndeposits. For the one-month period this June, the maximum
\ninterest rate of government-guaranteed deposits became 16.73%.<\/p>\n
The policy to ease the monetary level, although carefully
\npursued, is, of course, based on reasonable assumptions. The most
\nimportant thing, for example, is the strengthening of the value
\nof the rupiah against the US dollar.<\/p>\n
Before the rescheduling of the government's debts by the Paris
\nClub of creditor countries, and the BCA divestment, the rupiah
\nexchange rate against the dollar was above Rp 10,000. Yesterday,
\nthe rupiah traded in the vicinity of Rp 8,500 per dollar.<\/p>\n
Year-on-year inflation in May 2002 as against May 2001 was
\n12.93%. This has fallen when compared with year-on-year inflation
\nin February (15.13%), March (14.08%) and April (13.3%).<\/p>\n
Thus, the economy is likely to grow.<\/p>\n
True, it is feared that strengthening of the rupiah will have
\nan adverse impact, for example, causing exports to decline.<\/p>\n
The reduction in bank interest rates, however, can also
\nencourage exports.<\/p>\n
If this is indeed the scenario, it means that the direction
\ntoward economic recovery is getting clearer. Now, what is left is
\njust the political factor. If there is nothing rocking the
\npresent administration, it can be expected that the way toward
\nimprovement will become smoother.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/recovery-is-getting-clearer-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }