BI Decides To Maintain BI-Rate At Level 6 Percent

JAKARTA - Bank Indonesia (BI) decided to maintain the benchmark interest rate or BI Rate by 6 percent. In addition, BI also maintains the deposit facility interest rate and lending facility interest rate by 5.25 percent and 6.75 percent, respectively.

BI Governor Perry Warjiyo said he decided to maintain the benchmark interest rate at the level of 6 percent as a step to be consistent with the focus of prostability monetary policy.

"The Meeting of the Board of Governors (RDG) of Bank Indonesia on November 19-20 decided to keep the BI-Rate at 6 percent," Perry said at a press conference, Wednesday, November 20.

According to Perry, this decision is consistent with the direction of monetary policy to maintain inflation in the target of 2.5 percent plus-minus 1 percent in 2024 and 2025, as well as to support sustainable economic growth.

Perry conveyed that the focus of monetary policy was directed to strengthen the stability of the rupiah exchange rate from the higher impact of geopolitical uncertainty and the global economy with political developments in the United States.

In the future, Perry said that Bank Indonesia will continue to pay attention to the movement of the rupiah exchange rate and the prospects for inflation, as well as the development of data and dynamics of developing conditions in observing the space for further policy interest rates to decrease.

Meanwhile, Perry conveyed that macroprudential policies and payment systems were also continuously directed to support sustainable economic growth.

"Legal macroprudential policies continue to be pursued to encourage bank credit/financing to priority sectors for growth and job creation, including MSMEs and the green economy, while still paying attention to the precautionary principle," he said.

According to Perry, payment system policies are also directed to support growth, especially the trade sector and MSMEs, strengthen infrastructure reliability and the industrial structure of payment systems, and expand the acceptance of payment system digitization.

Perry said to maintain stability and support sustainable economic growth amid increasing uncertainty in global financial markets.

"Bank Indonesia continues to strengthen the mix of monetary, macroprudential, and payment systems to maintain stability and support sustainable economic growth amid the high uncertainty of the global financial market," he concluded.