Amid pressure on the rupiah and domestic economy, Bank Indonesia is expected to raise its benchmark interest rate following a possible increase in the US rate.
BPJS Health’s deficit is increasing. Although the government has injected bailout funds and made a series of new rules, it has not yet permanently improved its finances.
Bonds from Indonesian banks are deemed attractive due to high yields and solid fundamentals. Banks need to provide high returns, as there are various funding needs.
Indications are that economic growth will be stagnant or sluggish in the second half of this year. A survey of consumer and business confidence shows pessimism. Why?
The sharp weakening of the rupiah against the US dollar poses a risk to banking stability, but banks have enough muscle to face the challenges.
The government is hoisting tax on thousands of consumer goods imports to cut the current account deficit and strengthen the rupiah, but entrepreneurs are worried about side effects.
Indonesia’s dependency on short-term foreign investment funds is in the spotlight because it makes the country more vulnerable to sharp external pressures.
The government is trying to weather the rapidly weakening rupiah, more than 2 percent in one week, to close to Rp 15,000 per USD. This poses a threat to the financial market and the economic pace.