Update COVID-19 in Indonesia: 59,394 confirmed infections, 2,987 deaths (2 July 2020)
2 July 2020 (closed)
USD/IDR (14,566) +50.00 +0.34%
EUR/IDR (16,379) +36.63 +0.22%
Jakarta Composite Index (4,966.78) +52.39 +1.07%
According to Indonesia's central bank (Bank Indonesia), the higher benchmark interest rate (BI rate) will slow down credit growth in the Indonesian banking sector from a current pace of 19.6 percent (after second week of August 2013) to around 18 percent. The BI rate was raised to 7.0 percent last week. Besides the BI rate, both the lending facility rate and the deposit facility rate (Fasbi) were raised to 7.0 percent and 5.25 percent respectively to support the rupiah, while curbing inflationary pressures.
Latest stress tests suggest that the financial ratios of the Indonesian banking sector are strong. The sector that is expected to be hit hardest by higher interest rates is Indonesia's consumption sector, particularly the automotive industry.
Financial Ratios Indonesia's Banking Sector:
| June 2012
Source: Bank Indonesia