BI Again Defends Reference Interest Rate of 6 Percent

Governor of Bank Indonesia Perry Warjiyo. (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) decided to maintain the benchmark interest rate (BI-Rate) at the level of 6 percent at the Board of Governors Meeting (RDG) which took place on February 20-21, 2024.

Apart from that, BI also held the deposit facility interest rate and lending facility interest rate so that they remain at 5.25 percent and 6.75 percent.

BI Governor Perry Warjiyo said the decision to hold the benchmark interest rate at 6 percent was consistent with pro-stability monetary policy.

"This is to strengthen the policy of stabilizing the rupiah exchange rate and taking pre-emptive and forward-looking steps, ensuring that inflation remains under control within targets," said Perry in a press conference, Wednesday, February 21, 2024.

Currently, BI has set inflation in 2024 at around 2.5 percent plus or minus 1 percent.

Perry conveyed a pro-growth macroprudential policy to encourage sustainable economic growth.

"BI's policy focus is on strengthening the stability of the rupiah exchange rate to control imported goods and mitigate the impact of global financial market uncertainty," he explained.

Apart from that, macroprudential policy will be loose, to encourage bank financing for businesses and households.

The acceleration of digitalization of payment systems also continues to be encouraged and improved to expand digital economic and financial inclusion, including the digitalization of Central and Regional Government financial transactions.

"The policy mix will continue to be directed at maintaining stability and supporting sustainable economic growth," he explained.