Strategic Planning at United Parcel Service

In: Business and Management

Submitted By antonsanjaya
Words 493
Pages 2
Vanessa Hutabarat
Business Economics

KOMPAS (Saturday March 19th 2016)
Ekonomi (p.17)

Suku Bunga, Tak Hanya BI Rate

This article discuss about the phenomenon of the declining BI rate for this last 3 months (January until March 2016).
On August 29th 2013, BI rate increasing to 7%, and then increase again on September 12th 2013 to 7.25%. The increase trend keeps going on November 12th 2013 by 7.5% and last increase to 7.75% on November 18th 2014. This phenomenon was caused by the unstable of global economic, including The Fed plan to stop their stimulus in bond purchases. As US economic condition get better, the fed have a plan to increase their risk free which almost zero. The step that The Fed going to take force Indonesia, as developing country, to keep its risk free above 7% in order to attract investor. This fund from investor hopefully will make Indonesia’s financial account surplus in Indonesia’s balance of payment (NPI). The surplus of financial account in NPI will cover the deficit of Indonesia’s current account since ideally financial account add to current account equal to zero. The low number of Indonesia’s export compared to Indonesia’s import more or less affected the deficit of Indonesia’s current account. The low number of export in Indonesia was the result of decreasing number of global demand. This decreasing number of demand resulted the decreasing number of profit. This may cause the exporter to gain loss and to make bank loan was impossible due to the high number of credit interest rate. Since a lot of Indonesia’s business bankrupt, many products from other country with very competitive price come to Indonesia (import increasing). Their price was quite low and the demand for lower price product increasing due to the decreasing of buying power. This condition affects the neraca perdagangan (become deficit).…...

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