Reference Interest Rate Increases 6 Percent, BI: Maintain Stability And Economic Recovery Momentum

JAKARTA - Bank Indonesia (BI) decided to raise the benchmark interest rate, BI 7-Day Reverse Repo Rate (BI7DRR) by 25 basis points to 6 percent on October 19, 2023.

Deputy Governor of BI, Juda Agung said that Bank Indonesia is trying to maintain the stability and momentum of economic recovery by raising the policy interest rate by 25 bps to 6 percent,

Juda added that the increase in interest rates was also to strengthen the policy of stabilizing the Rupiah exchange rate from the impact of increasing global uncertainty, as well as pre-emptive and forward looking steps to mitigate its impact on imported inflation.

"Furthermore, to face future challenges, Bank Indonesia continues to strengthen its policy response to maintain macroeconomic and financial system stability," he explained in his official statement, Monday, October 23.

Juda said that there are several ways for BI to maintain stability and momentum for economic recovery, namely first, develop policy innovations such as the issuance of Rupiah Bank Indonesia Securities (SRBI), Macroprudential Liquidity Incentive Policy (KLM), and QRIS Cross Border.

Furthermore, second, strengthen end-to-end cyber resilience to ensure the security of public data that affects the smoothness of the payment system.

Then the third is to support green financing through various policy instruments in anticipating the challenges of climate change.