JAKARTA - Bank Indonesia (BI) maintains BI-rate at 6%, deposit facility rate at 5.25%, and lending facility at 6.75%. The decision was recently made following BI Board of Governor Meeting held for two days, December 17 to 18.

Quoted in a press release issued today (18/12), Perry Warijyo, Governor of BI, said that the focus of monetary policy is aimed to reinforce the stability of rupiah exchange rate following immense uncertainty in geopolitics and global economy.

“The rupiah exchange rate in December 2024 weakened 1.37% from the previous month,” Warijyo added.

It is also mentioned that weak rupiah is further aggravated by extreme global instability, particularly following the outlook of monetary policy of the United States (US), narrower possibility of Fed Funds Rate reduction, the strengthening of US Dollar, and geopolitical risks that snowballed to high investment inflow back to the US from global investors.

BI will optimize its monetary instruments, including strengthening pro-market strategies through instruments like Bank Indonesia Rupiah Securities (SRBI), Foreign Exchange Securities (SVBI), and Foreign Exchange Sukuk (SUVBI), to enhance the effectiveness of policies aimed at attracting short-term portfolio investments and bolstering the rupiah. (LK)