Senior economist and associate faculty of the Indonesian Banking Development Institute (LPPI) Ryan Kiryanto is of the opinion that as long as there is no increase in the benchmark interest rate or BI rate, it will be easier for entrepreneurs to access credit.
“Entrepreneurs are not constrained in accessing credit, either for additional credit or new credit,” he said, Jakarta, Wednesday (17/7).
In general, Ryan views BI’s decision to hold the benchmark interest rate as a logical choice. This is right to do while waiting for the decision of the US central bank, The Fed, which will lower the United States (US) policy interest rate or Fed Funds Rate/FFR in September or sooner than the previous projection at the end of this year.
Moreover, it is supported by macroeconomic indicators that are still well maintained. For example, inflation is relatively controlled and is in the target range of 2.5±1% and the strengthening of the rupiah exchange rate once morest the US dollar.
“However, due to external pressures, namely geopolitical risks and high for longer for FFR, the best choice at this time is for the BI rate to remain at 6.25%,” he concluded. (Z-2)
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