Again, Bank Indonesia Holds Benchmark Interest Rate Of 3.50 Percent: Protect Rupiah And Support Growth

BI Governor Perry Warjiyo (Photo: Doc. BI)

JAKARTA - Bank Indonesia (BI) has confirmed that it will not change the BI 7-Day Reverse Repo Rate (BI7DRR) benchmark interest rate at the level of 3.50 percent.

BI Governor Perry Warjiyo said this decision was in line with the steps taken by the monetary authority to maintain the stability of the rupiah exchange rate and the domestic financial system.

"This also reflects BI's stance in a situation of global financial market uncertainty, amid low inflation estimates and efforts to support economic growth during the COVID-19 pandemic," he said in a virtual press conference after the Board of Governors' Meeting (RDG) on Thursday, July 22. .

Furthermore, Perry also reported that the central bank also maintained the deposit facility interest rate at 2.75 percent and the lending facility interest rate at 4.25 percent.

"We at Bank Indonesia also continue to optimize the entire policy mix to maintain macroeconomic and financial system stability and support further economic improvement efforts," he said.

Perry added, there are seven strategic things that BI is currently doing to create stability in the national financial system.

1. Continuing the Rupiah exchange rate policy to maintain exchange rate stability in line with market fundamentals and mechanisms

2. Continuing to strengthen the monetary operations strategy to strengthen the effectiveness of the accommodative monetary policy stance

3. Encouraging intermediation by strengthening the policy on transparency of the basic lending rate (SBDK) with an emphasis on the development of risk premiums and their impact on setting new loan interest rates in various credit segments

4. Strengthening the payment system implementation ecosystem through the implementation of PBI PJP/PIP for simplification and efficiency of licensing/approval as well as encouraging payment system service innovation

5. Accelerate the support for payment systems that are fast, easy, cheap, safe, and reliable, for the distribution of Government social assistance (bansos) and support online transaction efficiency

6. Supporting exports by extending the deadline for submitting the exemption of Export Suspension Sanctions (SPE), from originally ending November 29, 2020 to December 31, 2022, to take advantage of the momentum of increasing demand from trading partner countries and rising world commodity prices

7. Facilitating the implementation of trade and investment promotions as well as continuing to socialize the use of Local Currency Settlement (LCS) in collaboration with relevant agencies. In July and August 2021, there will be trade and investment promotions in Japan, the United States, Sweden and Singapore

"Bank Indonesia is also increasing policy coordination with the government and related agencies to encourage economic growth, including coordination of monetary and fiscal policies, policies to encourage exports, as well as economic and financial inclusion," concluded BI Governor Perry Warjiyo.