Bank Indonesia Announces Policy Mix to Ensure Financial System Stability

Since the start of COVID-19, Bank Indonesia (BI) has been working closely with the Government of Indonesia and the Financial System Stability Committee on strengthening its policy mix to stabilize the IDR, maintain inflation, support the stability of financial systems, and to mitigate further declines in the economy.

According to BI Governor Perry Warjiyo, the strategy to keep Indonesia’s financial system stable consists of six essential monetary policies. These include a reduction of BI’s seven-day reverse repo rate in two stages by 25 basis points to 4.5%, as well as stabilizing and strengthening the IDR by increasing spot market and non-delivery forward market interventions, along with purchasing bonds in...