'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