Bank Indonesia Maintains its Benchmark Interest Rate at 3.5% in June 2021

The Bank Indonesia (BI) Board of Governors (RDG) meeting decided to maintain the BI benchmark interest rate (BI 7-Day Reverse Repo Rate/BI7DRR) at 3.5%. This rate has remained unchanged since February.

In addition, the central bank also maintained the deposit facility interest rate at 2.75% and the lending facility interest rate at 4.25%.

BI's decision is consistent with the forecast of still-low inflation and the maintained stability of the Rupiah exchange rate. BI is striving to strengthen economic recovery through various accommodative monetary and macroprudential policies, and the digitalization of Indonesia's payment system.

This will be done by continuously maintaining the stability of the Rupiah exchange rate in line with fundamentals and market mechanisms. BI will also continue its strategy of strengthening monetary operations and the transparency policy of the base lending rate.

Furthermore, BI extended the policy of reducing credit card late payment penalties until December 31st. The central bank is also accelerating the money market deepening program.

In addition, BI is facilitating the organization of trade and investment promotion. Finally, BI is taking note of the ongoing improvement in the current global dynamics.