Knock! Bank Indonesia Holds Reference Interest Rate At 3.50 Percent Level

Illustration. (Photo: By courtesy)

JAKARTA - Bank Indonesia (BI) has taken a stance to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent. This simultaneously extends the interest rate to the same level since the 25 basis point (bps) cut in February 2021.

Apart from that, the monetary authorities also did not change the deposit facility interest rate, which was 2.75 percent, and the lending facility rate at 4.25 percent.

BI Governor Perry Warjiyo said this decision was in line with the need for efforts to maintain the stability of the rupiah exchange rate in line with continued global uncertainty.

"Even though inflation is still low, we will continue to support national economic recovery measures with an accommodative monetary policy mix and encourage digitalization efforts in the financial sector," he said in an online press conference after holding a Board of Governors Meeting, Tuesday, April 20.

Perry added that the poor export performance had an impact on Indonesia's balance of payments surplus (NPI).

"This positive performance was mainly supported by demand from China, the US and Japan, as well as the increase in world commodity prices," he added.

"Bank Indonesia continues to strengthen policy coordination with the Government and the KSSK (Financial Stability System Committee), including the implementation of an Integrated Policy Package to accelerate the distribution of credit and financing from banks to businesses in priority sectors that support economic growth in the context of national economic recovery," closed Perry.