BI Synergizes Policy Mix With The Government For The Asta Cita Program

Rupiah (Photo: Antara)

JAKARTA - Head of the Communication Department of Bank Indonesia (BI) Ramdan Denny Prakoso said that monetary policy was directed to encourage economic growth while maintaining economic stability.

According to him, the direction of this policy was taken into account the global economic growth that was not yet strong and the growth of the domestic economy which was still below its capacity.

"Meanwhile, inflation remains under control in accordance with the 2.5 percent plus-minus 1 percent target and the estimated exchange rate remains stable and in accordance with the fundamentals supporting the achievement of inflation targets," he said in his statement, Thursday, September 4.

In line with the direction of monetary policy, he said that Bank Indonesia has lowered the BI Rate by 125 bps since September 2024, which is the lowest level since 2022.

Denny conveyed that the policy of stabilizing the Rupiah exchange rate also continues to be strengthened by intervention in the off-shore market through Non-Deliverable Forward (NDF) and intervention in the domestic market through the spot market, Domestic Non Deliverable Forward (DNDF) as well as purchasing Government Securities (SBN) in the secondary market.

In addition, he said that BI also expanded liquidity through the decline in the position of the Rupiah Bank Indonesia Securities (SRBI) monetary instrument from IDR 923 trillion in early 2025 to IDR 715 trillion at the end of August 2025.

Denny added that Bank Indonesia had also purchased SBN which until the end of August 2025 reached Rp200 trillion, including purchases in the secondary market and a debt switching program with the Government of Rp150 trillion.

He conveyed that Bank Indonesia will continue to synergize with the Government to encourage economic growth in line with the Asta Cita Pemerintah program, while maintaining economic stability.

"In this regard, the Bank Indonesia policy mix will be synergized with fiscal policies, including through the purchase of SBN in the secondary market and the macroprudential liquidity (KLM) incentive policy which has reached IDR 384 trillion by the end of August 2025," he said.

In addition, he said that the payment system digitization policy was continuously accelerated to encourage economic growth.

Denny said the synergy of fiscal and monetary policies to encourage economic growth still refers to the principles of prudent fiscal and monetary policy and maintain market discipline and integrity (market discipline and integrity).

According to him, the Government is directing Asta Cita's achievements in people's economic programs, including the Red and White Village Housing and Cooperative (KDMP) program.

Meanwhile, he explained that Bank Indonesia's support was carried out through purchasing SBN in the secondary market and sharing interest expense with the government for the programs set by the Government.

He emphasized that Bank Indonesia's support was still pursued in accordance with the rules of prudent monetary policy.

"The purchase of SBN in the secondary market is carried out in a measured, transparent and consistent manner with efforts to maintain economic stability so that it continues to maintain the credibility of monetary policy," he said.