High inflation occurs everywhere. Consumers are the bearers of the heaviest burden.

Inflation in the United States hits the highest record in the last 40 years. It is a big risk for Indonesia

Getting into 2022, the fight against inflation will be an important narrative that determines the movement of the global market.

The fear of tapering and higher interest rates after the Fed Chair Jay Powell's testimony to the Senate caused global stock prices to fall rapidly, including in Indonesia.

The tightening of the US dollar liquidity in the global market which is immediately followed up by a rise in interest rates will create a great shock to the market. Emerging economies like Indonesia will face high pressures.

There some good news about Indonesia’s economy because of the jump in various commodity prices in the global market. But their real effects are yet to come.

The key question is: would the additional ammunition from the IMF be enough to keep Indonesia’s financial market safe when the tapering shock arrives?

The resolution of the government to put the brakes on 2022’s budget deficit brings relief to the market.

Wholesalers are optimizing sales via online marketplaces as the retail industry gasps for air amid the emergency public activity restrictions. Meanwhile, small ones can only wait as their clocks tick.

Yopie Hidayat (Contributor)

Crypto assets become increasingly popular in Indonesia. In four months alone, from January to April, their transaction value reached Rp237 trillion, or a fourfold increase from throughout 2020. At least 5.6 million Indonesians now own various digital coins. Bappebti Chair, Indrasari Wisnu Wardana, explains his institution’s position regarding the new, largely unregulated market.

Yopie Hidayat (Contributor)

Yopie Hidayat (Contributor)

Yopie Hidayat

(Contributor)

The lesson from Turkey is clear. Central bank’s independence is the anchor of market confidence. If Indonesia does not want to share the same fate as Turkey and lose its credibility, the government needs to immediately figure out, one way or another, how to reduce its budget deficit.

Inflation in the US, which might trigger an interest rate hike by the Fed and reduced liquidity injection, is becoming the biggest fear of emerging markets, including Indonesia. Investor’s money which has been anchored here might just return home, in great numbers and fast.

Bank Indonesia and the Financial Services Authority relax the provisions for motor vehicle ownership loans. Players in the financial industry are not bold as to boast their performance will immediately spur.