Bank Indonesia (BI) kept the seven days repo rate (Bi-7DRR) at 4 percent. to 4.00 percent, said the governor on Wednesday (08/18) - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) kept the seven days repo rate (Bi-7DRR) at 4 percent. to 4.00 percent, said the governor on Wednesday (08/18). At the same time, the central bank also kept the Deposit Facility interest and Lending Facility rate by same points to 3.25 percent and 4.75 percent, respectively.

“Taking into account these various factors board of governor decided to kept at 4% to help the economy from the global economic pressures,” said the governor, Perry Warjiyo, at the virtual conference today.

Amid the global uncertainty, he believed Indonesian Rupiah exchange rate could still strengthen due to the prospect of an economic recovery that began to recover in the second semester and other economic data. Liquidity conditions are very adequate. BI, he asserted, have added liquidity in the banking and financial markets worth of Rp651.54 trillion (US$44.32 billion).

While to help the economic recovery, said Warjiyo, the central bank has purchased government bonds worth of Rp42.96 trillion and direct purchases with total amount Rp82.1 trillion.

To encourage the national economic recovery during the epidemic, BI put more emphasis on strengthening the synergy of monetary expansion by accelerating the government’ fiscal stimulus. In this regard, the Bank is committed to funding the 2020 State Budget through the purchase of state bond from the primary market in a measurable manner, both according to market mechanisms and directly as part of efforts to cover health costs, social protection, and sectoral ministries and local governments to support National Economic Recovery program.

In addition, Warjiyo explained, the central bank also shares the burden with the government to accelerate the recovery of micro, small and medium enterprises, and corporations. He assured that, B also continues to strengthen coordination of policy steps with the government and other stakeholders to maintain the macroeconomic and financial system stability.

US$1: Rp14,700

Written by Editorial Staff, Email: theinsiderstories@gmail.com