'I'll benefit from interest rate hike'

'I'll benefit from interest rate hike'

Bank Indonesia has several times raised interest rates as part
of its attempt to shore up the value of weakening rupiah. The
Jakarta Post interviewed residents on the policy and its impact
on their lives.

Indrarini, 42, works in a audit company in Jakarta. She lives
in Lebak Bulus, South Jakarta.

I personally have no problem with the interest rate hike as
the deposit interest rate is also increasing. I gain from this
situation.

For some people, especially small-scale business people, the
policy will certainly affect their finances. People who have
loans will also experience the same thing.

But, I guess Bank Indonesia has carefully calculated the
impact of the policy prior to raising the interest rate.

I believe if the policy at some point causes economic
difficulty in the community, then Bank Indonesia will revise it.

I don't know whether this interest hike will effectively help
strengthen the rupiah to the level, let's say, Rp 9,000 per U.S.
dollar.

Alverta Mutiara, 23, a university student in Depok. She lives
with her family in Ciledug.

I think what Bank Indonesia has done -- raising the interest
rate -- will have a short-term impact only and I don't think it
will be effective in strengthened the rupiah to its previous
level against the U.S. dollar.

It may even cause some businesses to close because they may be
unable to finance themselves with such high interest rates. It
also makes it difficult for low-income families to repay their
loans.

Since Bank Indonesia raised the interest rate, I have not seen
any significant change in the rupiah's exchange rate to the
dollar. Will it have a significant impact? We'll just have to
wait and see.

But, perhaps the rupiah's exchange rate against the dollar and
other major currencies would be even lower than its present level
if Bank Indonesia had not raised the rate.

I can only hope that our economic situation will get better
soon. Well, let's just hope and pray. Hopefully this situation
will be over shortly.

--The Jakarta Post