Bisnis.com, JAKARTA — Despite Indonesia’s two consecutive months of deflation, economists expect Bank Indonesia to hold the BI Rate at 5.75% this month due to persistent global pressures primarily arising from U.S. President Donald Trump’s protectionist policies, leading to foreign investors pulling out of Indonesian markets.
Hosianna Evalita Situmorang, an economist at PT Bank Danamon Indonesia, believes Bank Indonesia is hard pressed in lowering interest rates given the rupiah’s volatility, caused by the consistent outflow of capital.
