Investor Presentaiton
Bank Indonesia Policy Mix: March 2023
BB BANK INDONESIA
BANK SENTRAL REPUBLIK INDONESIA
The BI Board of Governors agreed on 15th and 16th March 2023 to hold the BI 7-Day Reverse Repo Rate at 5.75%,
while also maintaining the Deposit Facility (DF) rate at 5.00% and Lending Facility (LF) rate at 6.50%.
%
Hold the
BI 7-Day
Reverse
Repo
Rate at
5.75%
Strengthening
monetary
operations to
increase the
effectiveness
of monetary
policy
transmission.
Source: Bank Indonesia
Rp
•Strengthening Rupiah stabilisation policy as
part of the measures to control inflation,
particularly imported inflation, through
foreign exchange market intervention,
including spot and Domestic Non-Deliverable
Forward (DNDF) transactions, as well as
buying/selling government securities (SBN) in
the secondary market.
to
• Continuing the twist operation by selling
short-term SBN in the secondary market to
increase the attractiveness of SBN yields for
foreign portfolio investment inflows
strengthen Rupiah stabilisation measures.
•Strengthening the management of foreign
exchange proceeds of exports (DHE) through
the foreign exchange monetary operation
instrument in the form of foreign currency
term deposits (TD) as an instrument for
exporters to place foreign exchange
proceeds of exports through banks to Bank
Indonesia in accordance with market
mechanisms, effective from 1 Mar 2023.
Continuing
prime
lending rate
(PLR)
transparenc
y policy
with a focus
on bank
profitability
and the
policy rate
impact on
lending
rates
•
Strengthening payment
system digitalisation
policy to improve transaction efficiency as well
as the economic-financial digital ecosystem by:
(i) fostering payment system innovation, which
includes expanding (bank and non-bank)
participation, the delivery channels (direct debit,
bulk credit, requests for payment), as well as
BI-FAST acceptance amongst the public, and (ii)
continuing the Regional Payment Connectivity
(RPC) initiative by expanding cross-border QRIS
and implementing Fast Payment Interconnectivity.
Strengthening payment system policy ahead of
the holy fasting month of Ramadan and Eid-ul-
Fitr 1444 H by: (i) safeguarding the availability
and reliability of the BI and industry payment
systems, which includes monitoring the reliability
of participants' systems to provide payment
system transaction services, and (ii) ensuring
the availability of Rupiah currency fit for
circulation throughout the territory of the
Republic of Indonesia, particularly ahead of
Ramadan and Eid-ul-Fitr, through the SERAMBI
program 2023, while providing Rp195 trillion of
additional currency in circulation.
Strengthening
international
cooperation with
other central banks
and authorities in
partner countries,
while promoting trade
and investment in
priority sectors in
synergy with relevant
institutions. In
addition, Bank
Indonesia is
continuing to
collaborate with
relevant government
ministries/agencies to
ensure a successful
ASEAN Chairmanship
in 2023, particularly
in terms of the
finance track.
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