- BI maintained the 7-Day Repo Rate at 3.50%, while tweaking several macroprudential policies in order to spur credit growth.
- Despite strong economic indicators thus far in Q2, there is a strong probability that GDP growth would begin to slow in H2-21.
- Aside from concerns regarding Covid cases and vaccination, there is a risk that the planned tax hikes and/or global monetary tightening could push the Indonesian economy towards a new post-Covid equilibrium characterized by higher savings, lower loan growth, and narrower CAD.
