JAKARTA. In an effort to boost economic growth during the COVID-19 pandemic, Bank Indonesia (BI) has issued five monetary policies.
First, the policy on the reference interest rate. BI decided to hold the benchmark interest rate at the level of 4.00%. Second, exchange rate stabilization. Third, monetary expansion with quantitative easing (QE). To date, BI has injected Rp662.1 trillion to improve banking liquidity.
Fourth, relaxation of macroprudential policies through lowering down payments for vehicle and home ownership loans.
Fifth, relaxation of macroprudential intermediation ratio (RIM) and encouraging economic recovery through the digitalization of the payment system. (AM/AR)