Jokowi Governance to Face Tight Monetary Era

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  • Bank BII. TEMPO/Eko Siswono Toyudho

    Bank BII. TEMPO/Eko Siswono Toyudho

    TEMPO.CO, Jakarta - Economist from Bank Internasional Indonesia (BII), Juniman, said the Joko 'Jokowi' Widodo governance will be facing a tight monetary era because America's central bank may increase their interest rate next year. "It will be followed by Bank Indonesia (BI)'s increased interest rate. I predict BI's rate next year will increase again by 25 basis points," Juniman said yesterday.

    The government should anticipate it with various kinds of regulations due to the change of capital flows from an emerging market to developed nations because of the tight monetary policy. "This matter should be carefully anticipated. If not, Indonesia could once again fall to the abyss of crisis," he said.

    In order to anticipate the tight monetary era, the government must work extra hard to study more about the market so that the financial market in Indonesia will improve, said the economist. "Structural reformation should continue to be carried out."