The Nightmare after the Fall

The government and the central bank have agreed to re-institute a tight monetary policy as the banking sector and business community prepare for the worst.

April 24, 2001

The bad news filtered out from the National Development Planning Board (Bappenas) building at Taman Suropati in Central Jakarta after a meeting of a government economics team and the Board of Governors of Bank Indonesia (BI) last Friday. The decision: to revive the dormant tight monetary policy in order to rein in the fall of the rupiah. BI Deputy Governor Miranda Goeltom announced that the interest rate on Bank Indonesia Promissory Notes (SBIs),...

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