Too Little to Make a Difference

Last week, the government issued a series of long-awaited policies to try and breathe some life into our lackluster economy. But, unfortunately, its impact might not be enough to provide the necessary stimulus. As a result, the outlook for the second half of this year does not look as bright as earlier predicted.

After several months of discussion, Bank Indonesia finally announced details of its ruling to relax the required down payment on housing and motor vehicle loans. The down payment cuts, which range between five to ten percentage points, should help reduce the burden for consumers to purchase these two popular items and thus help spur economic growth.