BI-Rate Tetap, Rupiah Semakin Stabil

Summary

During the Bank Indonesia Governor's meeting on August 20-21, 2024, it was decided to maintain the interest rate at 6.25%, with deposit facility rates at 5.5% and lending rates at 7%. The Indonesian economy showed resilience, with a year-on-year growth of 5.05% in Q2 2024, driven by robust domestic consumption and investment. The Bank emphasized strengthening synergy with the Financial Stability Committee to ensure stability and support the banking sector's growth, reinforcing its commitment to sustainable economic development.

Takeaways

• 📊 The Bank Indonesia's board of governors met on August 20-21, 2024.
• 💰 The policy interest rate was maintained at 6.25%.
• 🏦 The deposit facility rate remains at 5.5%.
• 📈 The lending rate is held steady at 7%.
• 🌱 Indonesia's economic growth remains strong, supported by domestic demand and exports.
• 📉 The year-on-year growth rate for Q2 2024 was recorded at 5.05%.
• 🏠 Household consumption and investment are key drivers of economic growth.
• 🤝 Bank Indonesia is enhancing synergy with the Financial Stability Committee.
• ⚖️ The focus is on maintaining financial stability and supporting the banking sector.
• 🌍 Overall, the economic outlook for Indonesia remains positive despite challenges.

Q & A

What decision did the Board of Governors of Bank Indonesia make regarding the policy interest rate?

The Board decided to maintain the policy interest rate at 6.25%.

What are the current rates for the deposit and lending facilities?

The deposit facility rate is set at 5.5%, and the lending facility rate is at 7%.

What was Indonesia's economic growth rate for the second quarter of 2024?

Indonesia's economic growth for the second quarter of 2024 was recorded at 5.05% year-on-year.

What factors contributed to the economic growth in Indonesia?

The economic growth was primarily supported by domestic demand and exports, with significant contributions from household consumption and investment.

How does the Bank of Indonesia plan to address financial stability?

The Bank of Indonesia aims to strengthen synergy with the Financial Stability Committee to maintain financial stability.

Why is maintaining the policy interest rate important for the economy?

Maintaining the policy interest rate helps to control inflation and stabilize the economy by influencing borrowing and spending behaviors.

What role does household consumption play in Indonesia's economic growth?

Household consumption plays a crucial role as it drives demand for goods and services, thereby contributing to overall economic growth.

What are the implications of the current lending facility rate on businesses?

A lending facility rate of 7% can affect businesses by influencing their borrowing costs, impacting investment decisions and overall financial planning.

How does the Bank of Indonesia support the banking sector?

The Bank supports the banking sector through policies that ensure liquidity, stability, and the promotion of a resilient banking environment.

What is the significance of the economic growth rate being above 5%?

An economic growth rate above 5% is significant as it indicates a healthy and expanding economy, which can lead to increased employment and improved living standards.