JAKARTA - Bank Indonesia (BI) decided to hold BI 7 Day Reverse Repo Rate (BI 7DRR) at 5.75%, deposit facility rate at 5%, and lending facility rate at 6.5%. The decision was made during the Meeting of BI Governors held yesterday (15-16/3).

Erwin Haryono, Executive Director and Head of the Communication Department of BI, mentioned that this decision is intended to ensure the progress of inflation and inflation expectation. “BI 7DRR, which has been set to 5.75%, is believed to be sufficient in keeping the core inflation to arrive at 3.0±1% within the first half of 2023, and bringing the Consumer Price Index back to the 3.01±1% in the second half of 2023,” he said in the press release quoted Friday (17/3).

Then, the Rupiah rate stabilisation policy will be further reinforced to control inflation of imported goods, as well as mitigating the impact of unfolding financial uncertainty in the world.

Bank Indonesia, Haryono said, will continue to review policy mix in order to maintain stability and boost progress, including reinforcing monetary operations to strengthen the effectiveness of monetary policy transmission. It also involves stabilising Rupiah exchange rate to keep the inflation under control, implementing foreign exchange (forex) market intervention by offering on-the-spot transactions and domestic non-deliverable forward mechanism, as well as purchasing or selling government securities in the secondary market. (LK/ZH)