Bank Indonesia holds interest rates at 6%

Bank Indonesia (BI) decided on Wednesday to maintain the benchmark interest rate at 6.00 per cent following its meeting on November 19-20, 2024. It also kept the deposit facility interest rate at 5.25 per cent and the lending facility interest rate at 6.75 per cent.

The decision aligns with the Indonesian central bank’s monetary policy stance, which aims to keep inflation within the target range of 2.5 per cent ± 1 per cent for both 2024 and 2025 while supporting sustainable economic growth.

BI’s primary focus remains on stabilising the Rupiah exchange rate amidst increasing global economic uncertainty and political developments in the United States, its statement added.

In addition to monetary policy, Bank Indonesia will continue to implement macroprudential policies to encourage lending to priority sectors such as micro, small, and medium-sized enterprises (MSMEs) and green economy initiatives.

The central bank further said it would also prioritise the development of payment systems to support economic growth, particularly in the trade and MSME sectors, by enhancing infrastructure and promoting digitalisation.

Attribution: Bank Indonesia report

Subediting: Y.Yasser