Bank Indonesia Holds Benchmark Interest Rate at 6.00%

BI RATE - JAKARTA. Bank Indonesia (BI) held the benchmark interest rate (BI-rate) at 6.00% in the Board of Governors Meeting (RDG) BI February 2024. 

BI Governor Perry Warjiyo said, the decision to hold the interest rate is in line with the focus of pro-stability monetary policy. 

"This is to strengthen the rupiah exchange rate stabilization policy and pre-emptive and forward-looking steps, ensuring inflation remains under control within the target,” Perry said in a press conference, Wednesday (21/2) in Jakarta. 

Currently, BI sets the inflation rate for 2024 to be in the range of 2.5% plus or minus 1.

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Perry also stressed that the pro-growth macroprudential policy is to encourage sustainable economic growth. 

The macroprudential policy will be relaxed, to encourage banking financing credit in the business world and households. 

The acceleration of the digital payment system, including the digitalization of central and regional government finances, will also be strengthened to enhance transactions and expand digital economic and financial inclusion.

"The mix of these policies will continue to be directed to maintain stability and support sustainable economic growth," he added. 

Furthermore, in addition to holding the benchmark interest rate, the central bank also held the deposit facility interest rate at 5.25% and the lending facility interest rate at 6.75%.