High bank interest rates

High bank interest rates

It appears to be too much to hope that interest rates at banks
will decline anywhere in the near future. Does this mean that a
second recession will hit this country's economy? That is what
many people fear, including investors. That's why they prefer to
defer from investing or move their investments elsewhere.

However not everybody views Indonesia's economic future with
pessimism. The Asian Development Bank, for example, believes that
such apprehensions are exaggerated. It believes that there is
still room for growth.

Hubert Neiss, the IMF's former director, also believes that
the Indonesian economy could still grow. However, he also warns
that the Indonesian monetary authority should not maintain high
interest rates for too long, as that would adversely affect the
real sector as well as the national economy in its entirety.

-- Bisnis Indonesia, Jakarta