JAKARTA (TheInsiderStories) – Board of governors Bank Indonesia (BI) maintained the Seven Day Reverse Repo Rate (BI-7DRR) at 3.75 percent, the Deposit Facility rate at 3.00 percent, and the Lending Facility interest rate at 4.50 percent, the governor announced today. Apart from the policy rate, the central bank also taking other further steps to curb the domestic economy from
According to the governor, Perry Warjiyo, in a virtual conference hold on Thursday (01/21), the steps taken by BI to stabilize Rupiah inline with market fundamentals and mechanisms. Then, strengthening the monetary operation strategy to support the accommodative monetary policy stance.
Furthermore, to accelerated the financial market deepening by strengthening the Jakarta Interbank Spot Dollar Rate as a reference for the local exchange rate against the US Dollar in order to increases the domestic foreign exchange market and support the stability.
In addition, strengthening macro-prudential policies to boost credit and financing to priority sectors in the context of national economic recovery. Moreover, encouraged the transparency in bank lending rates in order to accelerate the transmission of monetary and macro-prudential policies.
And, strengthen integrated banking supervision coordination between BI, the Financial Services Authority, and the Deposit Insurance Corporation in order to support financial system stability. At the end, strengthening the role of payment system policies and Rupiah currency management in encouraging the formation of a digital economic and financial ecosystem to accelerate economic recovery.
“This seventh policy is carried out through the implementation of a strategy to achieve 12 million QRIS merchants in an integrated and collaborative manner, as well as the development of transfer,” said Warjiyo.
He opted to pause and keep the rate for potential easing in 2021, retaining his accommodative stance given benign inflation and the negative GDP. So far, BI has cut the policy rates by 125 basis points.
Followed the central bank decision and supported by positive news from the global market, on Thursday Rupiah strengthened 0.25 percent to 14,000 per US Dollar.
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