BI Commits To Maintaining Financial System Stability And Sustainable Economic Growth

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) said it would continue to maintain financial system stability and encourage sustainable economic growth.

This was revealed in the book Financial Stability Study No. 44, February 2025 (KSK 44) with the theme Strengthening Stability and Maintaining Growth from the Impact of Global Rambatan which was launched on Wednesday, March 5.

The KSK 44 book also notes that financial system stability in 2024 will be maintained and support Indonesia's economic performance in order to continue to grow.

Deputy Governor of Bank Indonesia, Juda Agung, said that in maintaining financial system stability and encouraging economic growth, it will go through loose macroprudential policies, as well as the synergy of the national policy mix.

Juda added that this was also supported by the inflation rate which was in the target range of 2.5 percent plus minus 1 percent and the stability of the Rupiah exchange rate was well maintained, amid increasing global economic uncertainty.

"In line with that, banking intermediation has also grown, supported by supply factors from interest in lending and adequacy of financing capacity by non-Bank banking and financial industry," he said Wednesday, March 5.

In addition, Juda said that Bank Indonesia is focused on efforts to maintain macroeconomic stability and financial system stability.

"The macroprudential policy remains directed by pro-growth and loose to encourage intermediation in accordance with the financial cycle through strengthening the Macroprudential Liquidity Incentive Policy or known as KLM," he said.

Juda said that starting April 1, 2025, the strengthening of the KLM, which was previously set at 4 percent from the DPK, was increased to 5 percent as of April 1, 2025, with the potential for additional liquidity of more than IDR 80 trillion, bringing it to a total of IDR 375 trillion.

According to him, this policy is aimed at encouraging bank credit to the real sector, to sectors that have high leverage in job creation, which is in line with the Asta Cita Pemerintah program.

Juda added that macroprudential policy support was also carried out through the synergy of Bank Indonesia with the Ministry/Institution's policy which is currently focused on two main sectors, namely housing and agriculture, including downstreaming and food security.

"The launch of the KSK book is expected to be a reference for strategic partners to understand the current condition of the stability of Indonesia's financial system," he said.

Juda added that mitigation measures can be formulated, build the confidence of financial sector players in the financial system, as well as the form of transparency and accountability of Bank Indonesia as Macroprudential authorities.