Indonesian Vice-President challenges central bank to reduce interest rates

Jakarta

INDONESIAN Vice-President Jusuf Kalla has challenged the country's central bank in person to stop using the US Federal Reserve as an excuse not to cut interest rates, which he said are too high and impeding investment.

Indonesia has higher interest rates than in its neighbours, which is one of the country's weaknesses, along with infrastructure and bureaucracy, Mr Kalla said in a speech in front of Bank of Indonesia (BI) governor Agus Martowardojo in Jakarta on Tuesday. In response, Mr Martowardojo told reporters the central bank is committed to stability and has held rates steady because of the Fed, China and commodity prices.