Indonesia’s central bank on Wednesday decided to maintain the benchmark interest rate at 6.25 percent, the deposit facility rate at 5.50 percent and the lending facility rate at 7.00 percent.
“This decision aims to strengthen the stabilization of the rupiah exchange rate and ensure that inflation remains controlled within the target range of 1.5 percent to 3.5 percent for 2024 and 2025,” Governor Perry Warjiyo told a press conference.
Perry said that the loose macroprudential policy will continue to be applied to encourage banking credit with prudence, while the payment system policy will focus on strengthening infrastructure and expanding digitalization.
The bank is also enhancing its monetary operation strategy for stabilizing the rupiah exchange rate through the optimization of securities and foreign exchange market interventions.
Global financial market uncertainty is beginning to ease, despite a tendency for slowdown, which is encouraging foreign capital inflows and strengthening emerging market currencies, including Indonesia.
Indonesia’s economic growth for the second quarter of 2024 was recorded at 5.05 percent annually, driven by household consumption, investment and increased exports.
Looking ahead, the central bank projects that economic growth for 2024 will be in the range of 4.7 percent to 5.5 percent, and will continue to strengthen the synergy between government fiscal stimulus and macroprudential policies to support sustainable economic growth.
