Possibility of Interest Rate Cut in Indonesia as Economy Improves

Reporter: Adrianus Octaviano | Editor: Syamsul Azhar

CREDIT INTEREST RATE - JAKARTA. The trend of interest rate hikes in Indonesia may soon come to an end. Many observers believe that there is a possibility of Bank Indonesia (BI) starting to lower the benchmark interest rate, given the improving economic conditions.

Helmi Arman, Chief Economist of Citi Indonesia, sees that BI has room to lower the benchmark interest rate in the second half of this year. "We expect the benchmark interest rate to decline to 5% in the second half of this year from the current position of 5.75%," he said on Wednesday (May 17th).