BI maintains stability to support sustainable economic growth

Bank Indonesia (BI) has stated it remains committed to maintaining stability as a key prerequisite for supporting sustainable economic growth. Amid high global uncertainty, the stabilisation of the rupiah exchange rate continues to be reinforced, consistently supporting the achievement of inflation targets and encouraging economic activity. The central bank is enhancing the optimisation of its monetary policy mix to maintain rupiah exchange rate stability, not solely relying on the policy interest rate but also sharpening other monetary instruments. Various instruments are being continuously optimised to maintain exchange rate stability while supporting foreign capital inflows. These include triple intervention in the foreign exchange market (spot, non-deliverable forward/NDF, and domestic non-deliverable forward/DNDF) and the optimisation of monetary instruments such as Bank Indonesia Rupiah Securities (SRBI), supported by swap incentive facilities and DNDF hedging. Furthermore, strategies to maintain sufficient liquidity in the money market and banking sector are also being strengthened. According to the central bank, the position of SRBI is on a more controlled trend. Going forward, the issuance of SRBI will continue to be directed to align with liquidity management needs and to support foreign capital inflows to strengthen rupiah exchange rate stability. On the other hand, BI is also continuously optimising various policy instruments to support economic growth. The implementation of the Macroprudential Liquidity Incentive Policy (KLM) will continue to be strengthened to encourage financing for priority sectors, including reinforcing the liquidity redistribution mechanism in the financial sector to make financing transmission more effective. In addition, the digitalisation of the payment system is also being continuously accelerated to further drive economic growth.