TEMPO.CO, Jakarta - Vice President Jusuf “JK” Kalla has set a target for Indonesia to have to lowest lending interest rate in ASEAN next year.
“By the end of next year, all interest rates will be 7 percent,” JK said when opening the Indonesia Property Expo at the Jakarta Convention Center on Saturday, February 13, 2016.
Earlier in January 2016, Bank Indonesia set its reference rate at 7.25 percent. JK revealed that Indonesia had the highest lending interest rate in ASEAN.
“If Thailand can set [the interest rate] at 7 percent, we cannot go higher than Thailand,” JK added.
JK explained that high interest rate would hamper the economic growth of a country. JK revealed that developed countries did not apply high lending interest rates.
“We had experienced the hazards of applying high interest rates,” JK said, adding that it would only benefit foreign countries instead of Indonesia.
JK added that high interest rate would draw funds out of Indonesia, instead of into the country. JK said that the government would implement a policy in order to lower the interest in the near future.
ANANDA TERESIA