JAKARTA (Yosefardi) – Bank Indonesia today raised again BI Rate to 6.5% in attempt to curb the inflation pressure after fuel price hike policy.
BI convinces that this measure would also help maintaining the stability of rupiah currency and financial system, then the economic growth momentum could be kept.
Global economy is still slowing down and facing a high uncertainty, prompting a capital reversal in emerging markets. For Indonesia, fund pullout of foregin investors from government bonds and stocks reached US$4.1 billion.
Alongwith, Indonesian economy growth target has been revised down to 5.8% to 6.2% from initial 6.2% to 6.6%.