1/8/09

Early indications strengthen purchasing power and increasing consumption

The decline BI rate is now entering the stage with a reasonable BI Rate 50 basis points, from 9.25 to be 8.75 percent. BI Rate fast or slow BI Rate will come down to about 8 percent. BI rate decrease will be a decrease in interest rates encourage working capital credit and investment and consumption credit. This step was taken in the government, in the hope that all parties to start working avert the impact of the crisis in the country. Decrease in credit interest rate of consumption in turn will strengthen the purchasing power or consumption. Thus the demand for goods and services can be improved. 

One impact of the crisis that will hold up to the front of the Termination of Employment Relations, as a result many companies experienced a decline of production capacity, followed dropped demand in the global market and domestic market 

Of course the government's stimulus should be able to respond to potential Termination of Employment Relations, especially in this industry labor groups. This is because the number of workers reached a dozen million people and expected production should be absorbed in the domestic market. Therefore, it is also necessary stimulus you up purchasing power of the people. A decrease in fuel price policy and fiscal stimulus should be the form of monetary stimulus reduction BI Rate. 

The signal Rupiah. 

Position currency rupiah at the end of the year 2008, which is Rp 11,000-Rp 12,000 per U.S. dollar, while at the beginning of the year 2009 more powerful, which is located on the level of Rp 10,000-Rp 11,000 against the U.S. dollar. Fluctuation of the rupiah is still very dependent on global conditions. To that end, efforts are expected to have with all parties to continue to maintain the rupiah. Rupiah still depends on global conditions, but perhaps more significantly to the future. Rupiah value at this time is considered sufficient to sustain permanent import and export activities nationally. Although the export activity, the more influence the global demand declined.

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