Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
Bank Indonesia Policy Mix: December 2022
B BANK INDONESIA
BANK SENTRAL REPUBLIK INDONESIA
The Bl Board of Governors agreed on 21st and 22nd December 2022 to raise the BI 7-Day Reverse Repo Rate
(BI7DRR) by 25 bps to 5.50%, while also raising the Deposit Facility (DF) and Lending Facility (LF) rates by 25 bps to
4.75% and 6.25% respectively.
%
Rp
Raise
the Bl
7-Day
Reverse
Repo
Rate to
5.50%
Strengthening
monetary
operations
by increasing
the interest
rate
structure in
the money
market in
accordance
with the
higher
BI7DRR
Source: Bank Indonesia
•Strengthening Rupiah exchange rate stabilization
policy as part of the measures to control
inflation, primarily imported inflation, through
foreign exchange intervention, including spot
and DNDF transactions, as well as
buying/selling SBN in secondary market;
•Continuing to buy/sell SBN in the secondary
market to strengthen transmission of the higher
BI7DRR by increasing the attractiveness of SBN
yields for foreign portfolio investment inflows to
strengthen Rupiah exchange rate stabilization
measures.
• Issuing
new foreign exchange monetary
operation (MO) instruments to boost placement
of Export Proceeds, especially from Natural
Resource, domestically by banks and exporters
to strengthen stabilization, including Rupiah
exchange rate stability and national economic
recovery. The foreign exchange MO instruments
are applied with competitive yields based on a
transparent market mechanism and incentives
given to banks
•Strengthening
accommodative,
and
inclusive,
sustainable
macroprudential policy to
boost the growth of
credit/financing by banks,
primarily non-recovering
priority sectors, People's
Business Credit (KUR), and
green credit/financing, to
support economic recovery
through amendment the
reserve requirement (GWM)
incentive to be applied from
1 April 2023
rate
• Continuing prime lending
rate (PLR) transparency
policy with a focus on
bank's interest
responses to the policy rate
• Strengthening payment
system policy to increase
efficiency in order to
maintain economic recovery
momentum
• Strengthening
international cooperation
with other central banks
and partner country
authorities,
and
facilitation of investment
and trade promotion
implementation in priority
sector in cooperation
with the
institutions.
• Bank
coordinates
relevant
• Taking
strategic
steps to ensure
orderly
national
payment system to
anticipate Christmas
and New Year:
• Ensuring
the
availability of quality
rupiah currency fit
for
circulation
throughout
the
territory of the
of
relevant
Republic
Indonesia
Indonesia
with the
Ministries/
• Maintaining
continuity
of
payment
system
operation by Bank
Indonesia
and
payment
system
industry.
Institutions for successful
2023
ASEAN
Chairmanship, especially
through financial track
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