The Business Times
business-time-50
Asean Business logo
SPONSORED BYUOB logo
SUBSCRIBERS

Corporate Indonesia braces for inflationary headwinds

google-preferred-sourceAdd BT as a preferred source
    • Although Bank Indonesia (BI), the country’s central bank, bucked the global trend of raising interest rates by keeping its benchmark rate unchanged a fortnight ago, economists and market analysts told The Business Times that they expect rates to rise later in the year.
    • Although Bank Indonesia (BI), the country’s central bank, bucked the global trend of raising interest rates by keeping its benchmark rate unchanged a fortnight ago, economists and market analysts told The Business Times that they expect rates to rise later in the year. PHOTO: BLOOMBERG

    Shoeb Kagda

    Published Tue, Aug 2, 2022 · 08:07 PM

    INDONESIAN corporations are bracing for a sharp hike in interest rates in the fourth quarter of this year as inflation continues to spike.

    Although Bank Indonesia (BI), the country’s central bank, bucked the global trend of raising interest rates by keeping its benchmark rate unchanged a fortnight ago, economists and market analysts told The Business Times that they expect rates to rise later in the year.

    Indonesia’s inflation rose to a 5-year high of 4.4 per cent in June. This has prompted concern among business leaders and market analysts as they fear that inflation may be much higher given the way it is calculated.

    Asean BusinessAseanIndonesiaBank IndonesiaInterest ratesInflation

    TRENDING NOW

    Longest-serving chief minister Taib Mahmud’s legacy looms large over Sarawak as a family feud over his estate threatens to expose skeleton’s in the eastern state’s political closet.

    On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart

    Piyush Gupta, chairman of SMU, Keppel and Mandai Wildlife Group, said: "We have to position the parks to serve our advocacy purpose, to serve an entertainment purpose, to continue to be what Singaporeans want.”

    Not retirement, but a rewiring and fresh perspectives post-DBS, says Piyush Gupta

    Thailand’s target is to export seven million tonnes of rice globally in 2026, but the Middle East war has turned the world topsy-turvy with supply disruptions, high oil prices and economic uncertainty.

    Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why

    A one-bedder unit is cheaper than larger flats, and also has lower recurring costs as management fees and maintenance costs are generally higher for bigger units.

    Should developers build more one-bedroom condo units?

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More