Jakarta’s interest rate cuts should help stimulate the economy in the short term and facilitate the government’s pursuit of its 5.2% growth target, but in the longer term cheaper capital if allocated ineffectively could weigh down the economy when interest rates eventually increase. In 2016, Bank Indonesia, the country’s central bank, cut interest rates 25 basis points on six occasions, and [Read more…] about Effective Capital Allocation Necessary for Indonesia To Harness Interest Rate Cuts
Grasberg Decision Unlikely To Impact Greatly Rio Tinto
Rio Tinto might abandon its interests in the Grasberg copper and gold mine in West Papua, Indonesia, underscoring the uncertain Indonesian political environment in which mining companies must navigate. Rio Tinto has a joint-venture interest in the mine with PT [Read more…] about Grasberg Decision Unlikely To Impact Greatly Rio Tinto