Business Brief

Business Brief

BI Hikes Key Rate: The central bank raised its key policy rate this week by 25 basis points to 8.25 percent to rein in soaring inflation.

It was Bank Indonesia’s first interest rate hike in more than two years. The central bank last hiked the benchmark BI rate in December 2005, to its peak of 12.75 percent.

The decision took into account the prospect of inflationary pressures in coming months and the volatility of global commodity prices, BI senior deputy governor Miranda Goeltom told a briefing on Tuesday.

Aussie Firm Wyes Krakatau Steel: Australian firm BlueScope Steel Ltd. has expressed an interest in participating in the privatization of Indonesia’s largest steel maker, PT Krakatau Steel.

A spokeswoman for BlueScope in Australia said discussions were at a very early stage and it was too early to provide any details.

India’s Tata Steel could also bid for a stake in Krakatau Steel, according to the state-run news agency Antara at the weekend.

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