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SBIs

Waiting... Hesitating

Tuesday, September 17, 2002

The interest rate of Bank Indonesia Certificates (SBIs) has dropped to 13.78 percent but this does not necessarily translate into increased economic activity.

arsip tempo : 173519088794.

. tempo : 173519088794.

Falling bank interest rates are usually welcome news. As banks extend loans, entrepreneurs intensify their investments, the stock market becomes bullish, and economic activity increases. This is the ideal; however it is still too early to know for certain if the ideal will be realized in the case of Indonesia. If the goal of the rate cuts is massive investment, available capital alone is not enough—legal certainty and political stabilit

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