Minister Of PKP: Decreased BI Rate Can Have A Positive Impact On The Housing Sector

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait. (Photo: Doc. Antara)

JAKARTA - Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) is optimistic that the reduction in the benchmark interest rate or BI-Rate by Bank Indonesia (BI) can have a positive impact on the housing sector.

"It will definitely have a positive impact," said Ara in Jakarta, quoted by Antara, Tuesday, May 27.

The decline in the benchmark interest rate is an encouragement for the Ministry of PKP to continue to make pro-people policies.

Ara appreciates the decline in the benchmark interest rate which can create growth as well as drive the national economy.

"With the decline in interest rates, BI is aware of the current situation. So this is a wise step from BI," he said.

For information, Bank Indonesia (BI) said that the decision to reduce the benchmark interest rate or BI-Rate by 25 basis points (bps) to 5.5 percent was consistent with efforts to keep inflation under control in the target to encourage sustainable economic growth.

This decision is consistent with low and controlled inflation forecasts for 2025 and 2026 at a target of 2.5 to 1 percent, efforts to maintain stability of the Rupiah exchange rate in accordance with its fundamentals, and to contribute to economic growth.

In addition to the BI-Rate, Bank Indonesia also decided to reduce the deposit facility interest rate and lending facility rate by 25 bps to 4.75 percent and 6.25 percent, respectively.

In the future, Bank Indonesia will continue to direct monetary policy to maintain inflation in its targets and stability of the rupiah exchange rate according to fundamentals while still observing space to help boost economic growth according to the dynamics that occur in the global and domestic economy.

Meanwhile, accommodative macroprudential policies continue to be optimized to support sustainable economic growth with various strategies to increase credit growth and encourage the flexibility of banking liquidity management.