Jakarta. Bank Indonesia (BI) has decided to maintain the central bank's interest rate at 6 percent, the deposit facility rate at 5.25 percent, and the lending facility rate at 6.75 percent to keep inflation within the target range of 2.5 percent for 2024 and 2025 while supporting sustainable economic growth. The decision was made following its Board of Governors Meeting on Nov. 19-20, 2024.

"Monetary policy is focused on strengthening rupiah stability amid heightened geopolitical and global economic uncertainty, including developments in US politics," BI Governor Perry Warjiyo said during a press conference at the BI headquarters in Jakarta on Wednesday.

Perry said that BI will continue to monitor rupiah movements, inflation prospects, and evolving economic conditions to assess further room for policy rate adjustments.

"Meanwhile, macroprudential and payment system policies remain directed toward supporting sustainable economic growth," he added.

BI has adopted an accommodative macroprudential policy to encourage bank lending and financing to priority sectors, including MSMEs and the green economy, while adhering to prudent principles. The central bank’s payment system policies aim to boost growth in sectors such as trade and MSMEs by enhancing payment infrastructure reliability and expanding digital payment acceptance.

"BI continues to strengthen policy coordination with the government to safeguard stability and bolster economic growth," Perry said.

Indonesia’s economy remained steady in the third quarter, with a year-on-year growth of 4.95 percent, driven by household consumption—particularly among higher-income groups—and investments supported by ongoing National Strategic Projects (PSN).

In the fourth quarter, economic growth is projected to remain robust, supported by increased government spending toward the year’s end, steady consumer confidence, and the positive impact of regional elections. Investment is expected to continue, driven by corporate capital expenditure and production orders, as indicated by BI’s Prompt Manufacturing Index (PMI).

For the full year, BI estimates 2024 economic growth to fall within the 4.7 percent range, with further improvement anticipated in 2025.

"BI is strengthening its policy mix to promote economic growth in synergy with the government's fiscal stimulus, focusing on optimizing macroprudential measures and accelerating the digitalization of payment transactions," he concluded.

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