Bank Indonesia Decides to Maintain BI-Rate at 6.25 Percent

RDG Bank Indonesia July 2024 (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) has decided to maintain the benchmark interest rate or BI Rate at 6.25 percent. In addition, BI also maintains the deposit facility interest rate and lending facility interest rate at 5.50 percent and 7.0 percent, respectively.

BI Governor Perry Warjiyo said that the decision to maintain the benchmark interest rate at 6.25 percent was a pro-stability monetary consistency measure.

"The Bank Indonesia Board of Governors Meeting (RDG) on July 16-17, 2024 decided to maintain the BI-Rate at 6.25 percent," Perry said in a press conference, Wednesday, July 17.

Perry said that the decision to maintain this interest rate was consistent with the pro-stability monetary policy as a pre-emptive and forward-looking measure to ensure that inflation remains under control within the target of 2.5 percent plus minus 1 percent in 2024 and 2025 in line with the pro-stability monetary policy stance.

Perry said the focus of short-term monetary policy is directed at strengthening this policy supported by strengthening monetary operations to strengthen the effectiveness of stabilizing the Rupiah exchange rate and attracting foreign portfolio inflows.

Meanwhile, Perry said that macroprudential policies and payment systems remain pro-growth to support sustainable economic growth.

"Loose macroprudential policies continue to be taken to encourage credit or banking financing to the business world and households," he said.

According to Perry, the payment system policy is directed at strengthening the reliability of the infrastructure and structure of the payment system industry, as well as expanding acceptance of digitalization of the payment system.

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

"Bank Indonesia continues to strengthen the mix of monetary, macroprudential and payment system policies to maintain stability and support sustainable economic growth amidst the still high uncertainty of global financial markets," he concluded.