Government of Indonesia Cuts The Interest Rate

Bank Indonesia the authority of monetary policy on January 7, 2009 cut the BI Rate 50 basis points from 9.25% to 8.75%. The decreasing of interest rate is based on the prediction of the inflation rate on 2009. The inflation rate on 2009 is predicted around 7%. The lower interest rate will gave positive impact to the investment in real sector specially in manufacturing sector. The increasing in investment on manufacturing sector will give positive stimulus to the Indonesia economics.