Benchmark Interest Rate Becomes 6.5 Percent, Airlangga Steps BI Stabilization Of Rupiah Exchange Rate

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto opened his voice regarding Bank Indonesia (BI)'s decision to raise the BI Rate benchmark interest rate to 6.25 percent.

Airlangga considered the decision to be a positive and appropriate step taken by BI to balance the rupiah exchange rate after Indonesia's trade balance in March 2024 had a high surplus.

"Of course first there is momentum where our trade balance is positive, so this momentum is important to balance supply and demand," he explained at his office, Thursday, April 25, 2024.

Airlangga said BI's policy of raising interest rates would strengthen the rupiah exchange rate, after Indonesia's trade balance in March 2024 had a high surplus.

For information, Indonesia's export-import balance as of March 2024 increased to 4.47 billion US dollars from February to only 830 million US dollars.

"So the most important thing in maintaining that currency is that we have a trade balance and finally BI, our trade balance, which has usually started to decline, has increased back to 4 billion US dollars more," said Airlangga.

Airlangga said, this is also a good step taken by Bank Indonesia to strengthen the supply of dollars in Indonesia.

"This is a good number and we see that this good number is used by BI, the momentum is to increase the strength of prevention of capital flights. By BI, 25 basis points have been increased, in order to actually strengthen positively and strengthen the rupiah," he said.

According to Airlangga, the decision made by Bank Indonesia to maintain the stability of the rupiah exchange rate through hawkish's monetary policy is right at this time. Because, the US Central Bank is still trying to control inflationary pressures.

"America is making a higher for longer strategy so it uses that strategy against its inflation, but for countries like Indonesia it can attract currency out. But the defense mechanisms carried out are already in the right corridor," he said.