JAKARTA – The Board of Governors Meeting (RDG) of Bank Indonesia (BI) has decided to keep the BI Rate at 5.75%, accompanied by the deposit facility rate at 5.00% and the lending facility rate at 6.50%.

Perry Warjiyo, Governor of BI, stated that the decision aligns with efforts to stabilise inflation and the rupiah exchange rate amidst ongoing global uncertainties.

“Going forward, Bank Indonesia will continue to monitor inflation prospects and economic growth in considering any potential room for lowering the BI Rate, while taking into account movements in the rupiah exchange rate,” Perry said during a press conference held on Wednesday (19/2).

Despite holding the interest rate, Perry mentioned that BI will continue to support economic growth through various macroprudential policies. For instance, the Macroprudential Liquidity Incentive Policy (KLM) will be utilised to encourage bank lending in several priority sectors.

“Payment system policies are also being directed to support growth, particularly in the trade sector and small and medium enterprises (SMEs),” Perry added. (KR/ZH)