Indonesian Central Bank Retains Benchmark Rate at 5.75%
Jakarta. The Indonesian central bank decided on Thursday to maintain the benchmark interest rate at 5.75 percent in a policy that aims to control the inflation rate and ensure the stability of the rupiah exchange rate.
The benchmark rates for deposit facilities and lending facilities will also remain unchanged at 5 percent and 6.5 percent, respectively.
Bank Indonesia Governor Perry Warjiyo said that this decision is in line with the goal of keeping inflation within the range of 3 percent, with a margin of plus or minus 1 percentage point for the current year, and achieving 2.5 percent for 2024.
"Our monetary policy is primarily focused on maintaining the stability of the rupiah exchange rate, particularly given the high volatility in global financial markets," Perry stated during a news conference held at the central bank's office in Jakarta.
In addition to inflation and exchange rate stability, the central bank is committed to implementing policies that encourage banks to increase lending to businesses.
This initiative supports the government's objectives in areas such as downstream processing of raw minerals, housing, tourism, inclusive financing, and green economy.
Perry also mentioned the need to accelerate the digitalization of the payment system, including financial transactions between central and regional governments.
The annual inflation rate for the 12 months ended August is 3.27 percent, while the monthly inflation rate stands at 0.02 percent, according to Central Statistics Agency data.Tags: