REPUBLIKA.CO.ID, JAKARTA - Retail and Consumer Director of PT Bank Tabungan Negara Tbk (BTN), state owned banking company, Irman A Zahiruddin said banks should provide more attractive interest to anticipate the weakening of IDR. In other words, banks had to rise its interest rates on deposits to keep the depositors' fund in domestic market.
"Attractive interest must be given to keep the money in domestic market," Zahiruddin said on recently.
Zahiruddin said that Bank Indonesia (BI) should increase its interest rates to absorb the capital as IDR tended to weaken. He also suggested banks to provide rewards program to their customers.
BI performs multiple operations or twin operation to anticipate the pressure on financial markets. IDR exchange stood at 10,504 IDR per USD or decreased 53 basis points on Tuesday. Warjiyo said BI would intervention in market with twin operation.
"Intervention in foreign exchange market to stabilize IDR exchange rate and we also purchase government bonds from secondary market," Deputy Governor BI, Perry Warjiyo said.
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