Legitimate! Bank Indonesia Opens 2022 With Fixed Reference Interest Rate Of 3.50 Percent

Governor of Bank Indonesia Perry Warjiyo (Photo: Doc. BI)

JAKARTA - Bank Indonesia (BI) decided to keep the benchmark interest rate at 3.50 percent. The decision was taken based on the results of the Board of Governors' Meeting (RDB) which was held for two days, on January 19-20.

BI Governor Perry Warjiyo said that if the central bank also did not change the deposit facility interest rate of 2.75 percent and the lending facility rate of 4.25 percent.

"The direction of Bank Indonesia's policy mix for 2022 is to maintain stability and strengthen the national economic recovery," he said during a virtual press conference on Thursday, January 20.

According to Perry, this step is in line with the need to maintain stability in inflation, exchange rates, and the financial system as well as efforts to support economic growth, amidst increasing external pressures.

"Macroprudential policies, the payment system, deepening of the money market, as well as an inclusive and green financial economy, continue to encourage economic growth," he said.

For information, the BI rate of 3.50 percent is the lowest level in Indonesia's history as a response to the pressure caused by the COVID-19 pandemic. In VOI records, the 3.50 percent interest rate has been in effect since 2020 with gradual cuts of 150 basis points in six declines.

"Bank Indonesia continues to strengthen policy synergies with the government and the Financial System Stability Committee (KSSK) in the context of accelerating vaccination and opening up economic sectors, coordinating fiscal and monetary, encouraging credit/financing to businesses in priority sectors, to maintain macroeconomic stability. and the financial system as well as encouraging the recovery of the national economy,” concluded Perry.