AFTER 18 months of stability, Bank Indonesia finally raised its interest rate to 6.75 percent at the beginning of February. It seemed an unavoidable decision to make, given the mounting pressure from outside as well as inside the country. At that time, the price of goods and inflation were slowly rising. Yet until January, the central bank was sure it didn’t need to raise its benchmark BI (Bank Indonesia) Rate.

Bank Indonesia Governor Darmin N