Bank Indonesia (BI) has stated that it is still prioritising\nstability as global pressures are considered to have not fully subsided.\nWhile seeking to maintain stability, the central bank is also taking\nsteps to balance its policy mix in order to support growth.<\/p>\n
\u201cAlthough we are currently holding the interest rate, we have held it\nat the same level of 5.75 percent for two months now, on the other hand\nwe are issuing policies or other instruments aimed at maintaining the\nstability of the rupiah,\u201d said BI Acting Governor Destry Damayanti at a\npress conference following the BI Board of Governors Meeting in Jakarta\non Wednesday.<\/p>\n
Destry explained that Indonesia\u2019s central bank has issued a number of\nincentives, particularly to support inflows entering Indonesia. \u201cBecause\nof course we do not want our SRBI rate to increase. So if we look at the\nlast two weeks, the SRBI interest rate or SRBI yield has continued to\ndecline,\u201d she said.<\/p>\n
Foreign portfolio investment flows in the third quarter of 2026 up to\n14 August 2026 recorded net inflows of 1.8 billion US dollars. This\ndevelopment was supported by the government\u2019s global bond issuance as\nwell as inflows into Government Securities (SBN) and Bank Indonesia\nRupiah Securities (SRBI).<\/p>\n
Previously, at the July 2026 Board of Governors Meeting, BI announced\nincentives for sell-side swap hedging which were increased to 12.5\npercent, as well as incentives for sell-side DNDF (domestic\nnon-deliverable forward) hedging of 15 percent.<\/p>\n
\u201cWhat we are doing is providing incentives for hedging costs, for\nforeign funds entering here so that we can maintain an attractive spread\nand they will enter our financial instruments,\u201d said Destry.<\/p>\n
On the inflation side, Destry confirmed that BI continues to\ncoordinate with central and regional governments through the\nCentral\/Regional Inflation Control Teams (TPIP\/TPID) in implementing the\nInflation Control and Prosperous Food Movement (GPIPS).<\/p>\n
\u201cSo it is a joint collaboration. And we are also trying to ensure the\nrupiah can be stable and can trend towards strengthening. Because of\ncourse we are also paying attention to the pass-through impact of\nimported inflation, which is certainly a concern for us so that we can\nlimit its impact by maintaining rupiah stability and striving for a\ntrend of continued appreciation,\u201d said Destry.<\/p>\n
In order to support growth, BI is also strengthening its\nMacroprudential Liquidity Policy (KLM) to encourage increased bank\nlending\/financing to priority sectors. Up to the first week of August\n2026, KLM incentives obtained by banks were recorded at Rp446.5\ntrillion, with allocation to the financing channel amounting to Rp368.4\ntrillion, the interest rate channel amounting to Rp73.2 trillion, and\nthe financing to funding channel amounting to Rp4.9 trillion.<\/p>\n
Bank lending in July 2026 grew 13.58 percent year-on-year (yoy), up\nfrom growth of 12.67 percent (yoy) in June 2026.<\/p>\n
Previously, BI through its Board of Governors Meeting on 18-19 August\n2026 decided to hold the BI-Rate at 5.75 percent, the deposit facility\nrate at 4.75 percent, and the lending facility rate at 6.50 percent.<\/p>\n
According to BI, this decision remains consistent with efforts to\nstrengthen rupiah exchange rate stability from the impact of high global\nturmoil due to the war in the Middle East, to maintain the inflation\ntarget of 2.5 percent plus or minus 1 percent (range of 1.5-3.5 percent)\nin 2026 and 2027, and to support sustainable economic growth.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bi-still-prioritises-stability-as-global-pressures-have-yet-to-subside-1787137087", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }