Bank Indonesia Decides To Maintain BI Rate At 6 Percent

BI Governor Perry Warjiyo (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) decided to maintain the benchmark interest rate or BI Rate by 6 percent. In addition, BI also maintains the deposit facility interest rate and lending facility interest rate by 5.25 percent and 6.75 percent, respectively.

BI Governor Perry Warjiyo said he decided to maintain the benchmark interest rate at the level of 6 percent as a step to be consistent with the focus of prostability monetary policy.

"The Meeting of the Board of Governors (RDG) of Bank Indonesia on October 15-16 decided to keep the BI-Rate at 6 percent," Perry said at a press conference, Wednesday, October 16.

According to Perry, this decision is consistent with the direction of monetary policy to ensure that inflation remains under control in the 2.5 percent plus-minus 1 percent target by 2024 and 2025, as well as to support sustainable economic growth.

Perry conveyed that the focus of short-term monetary policy on the stability of the rupiah exchange rate was due to the increasing uncertainty in the global financial market.

In the future, Perry said that Bank Indonesia will continue to pay close attention to the space for lowering policy interest rates while still paying attention to the prospects for inflation, the Rupiah exchange rate, and economic growth.

Meanwhile, Perry conveyed that macroprudential policies and payment systems were also continuously directed to support sustainable economic growth.

"Legal macroprudential policies continue to be pursued to encourage bank credit/financing to priority sectors for growth and job creation, including MSMEs and the green economy, while still paying attention to the precautionary principle," he said.

According to Perry, payment system policies are also directed to contribute to growth, especially in the trade sector and MSMEs, strengthen infrastructure reliability and the industrial structure of payment systems, and expand the acceptance of payment system digitization.

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

"Bank Indonesia continues to strengthen the mix of monetary, macroprudential, and payment systems to maintain stability and support sustainable economic growth amid the high uncertainty of the global financial market," he concluded.