The decision will also support efforts to stabilize the rupiah exchange rate in line with the fundamentals amid high global uncertainty and encourage economic growth.
"Bank Indonesia will continue to monitor the prospects for inflation and economic growth," Warjiyo said at a press conference on the results of the BI board of governors' meeting for February 2025, in Jakarta on Wednesday.
He affirmed that macroprudential and payment system policies continue to be directed to support sustainable economic growth.
The macroprudential liquidity incentive policy has been increased to further encourage credit or bank financing to priority growth sectors and job creation, in keeping with the government's Asta Cita program.
Payment system policies are also being directed to support growth, especially in the sectors of trade and micro, small, and medium enterprises (MSMEs), by strengthening infrastructure reliability and payment system industry structure, as well as expanding payment system digitalization acceptance.
The BI governor explained that the monetary, macroprudential, and payment system policies are supported by policy measures by the central bank.
One of them is strengthening the pro-market monetary operations strategy to bolster the effectiveness of monetary policy transmission, accelerating money market and foreign exchange market deepening, and encouraging foreign capital inflows.
They also include the strategy to stabilize the rupiah exchange rate in line with the fundamentals through intervention in the foreign exchange market in spot transactions, domestic non-deliverable forwards (DNDF), and government securities (SBN) in the secondary market.
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Translator: Rizka Khaerunnisa, Raka Adji
Editor: Azis Kurmala
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