'The effect will be temporary'<\/p>\n
In a move to stabilize the rupiah, Bank Indonesia has decided to
\nincrease its benchmark interest rate (on Tuesday to 10 percent).
\nThe decision will affect people who have to repay bank loans. The
\nJakarta Post asked some residents how they were dealing with the
\ninterest rate hike.<\/p>\n
Amel Kirana, 29, works at a private bank. She lives in South
\nJakarta:<\/p>\n
The interest rate hike came at a very unfortunate time for me.
\nI had just taken out a loan for a house. I thought that it was
\ngoing to be a long-term investment, but with the hike, the bank
\ncan now put up its interest rate for the monthly installments.<\/p>\n
Currently, I spend a third of what I make to repay the debt.
\nLuckily, I am still single. I do not know when my bank will raise
\nthe interest, but I guess not long after this.<\/p>\n
Perhaps the raise will help boost our nation's monetary
\ncondition, but most people are afraid that the effect will only
\nbe temporary. For example, the bank that I work for is more
\ncareful in giving out loans now. However, that will probably only
\nlast for a few months as banks sort of depend on lending.<\/p>\n
Emen Suhaimin, 57, a small-scale entrepreneur who lives in
\nKemanggisan, West Jakarta:<\/p>\n
Three years ago I took out a loan for Rp 20 million from a
\nprivate bank to expand my business. At that time, it was not
\ndifficult to pay back as the interest rate and business were
\nstill good.<\/p>\n
Now these days, business is decreasing and with the interest
\nrate going up, it is going to be more difficult for me to manage
\nmy finances. I still have two more years to repay the loan.<\/p>\n
I just hope that our economy gets better, and both interest
\nrates and businesses will be back to where they were before.
\nThese kinds of problems make it difficult for our small
\nbusinesses to grow.<\/p>\n
-- The Jakarta Post<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/the-effect-will-be-temporary-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }