BI Prioritizes Strengthening Rupiah And Opens Opportunities For Lowering BI-Rate Interest Rates In The Fourth Quarter Of 2024

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

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo said there was an opportunity to cut interest rates or BI-rates in the fourth quarter of 2024, even though the rupiah exchange rate had strengthened and inflation was maintained low.

"So we will still see open space for the BI-rate decline in the fourth quarter of 2024. It is still consistent with the previous statement that space is open to BI-rates in the fourth quarter of 2024," Perry explained in a press conference, Wednesday, August 21.

Perry is optimistic that the rupiah exchange rate in the future will continue to strengthen in line with the entry of portfolio investments into SRBI, SBN, and Shares.

In addition, he said, other considerations to still focus on strengthening the rupiah because the impact of strengthening the rupiah is good for economic growth.

The rupiah that strengthens makes prices cheaper, especially food prices and other prices and because it also supports low inflation, especially from imported inflation," he explained.

Perry added that strengthening the rupiah also supports other sectors that import a lot, and create jobs.

For example, the textile industry and the manufacturing industry have a positive impact on financial and banking stability.

"With that, monetary policy remains pro-stability to further strengthen the stabilization of the rupiah exchange rate," he explained.