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Time to Wean Banks Away from BI

Tuesday, January 23, 2001

The interest rate on Bank Indonesia promissory notes has reached its peak over the last one and a half years. How much longer is Bank Indonesia going to 'suckle' the banks?

arsip tempo : 173167145451.

. tempo : 173167145451.

Banks' honeymoon with Bank Indonesia promissory notes (SBIs) is expected to be over before long. They will no longer be able to enjoy high income from SBI interest, as they did in the past year. The increase in tax on interest of deposits, from 15 percent to 20 percent, is one of the reasons for this. It has forced banks to raise their deposit interest by an average of 1-1.5 percent. Otherwise, depositors will most likely withdraw their funds from

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