Kamis 23 Nov 2023 16:50 WIB

Bank Indonesia Maintain Interest Rate at 6 Percent

Bi interest rate is determined based on inflation estimates for the next two years.

Rep: Rahayu Subekti/ Red: Fuji Pratiwi
Governor of Bank Indonesia Perry Warjiyo in a press confrence in Jakarta, Friday (July 27, 2023).
Foto: Republika/Rahayu Subekti
Governor of Bank Indonesia Perry Warjiyo in a press confrence in Jakarta, Friday (July 27, 2023).

REPUBLIKA.CO.ID, JAKARTA -- Central Bank of Indonesia (Bank Indonesia/BI) has decided to maintain its interest rate in November 2023 at 6,00 percent. BI Governor Perry Warjiyo emphasized that this decision does not only take into account inflation this year.

"BI's monetary policy, especially the interest rate, is determined based on inflation estimates for the next two years compared to the target," Perry said in BI monthly press conference in November 2023 in Jakarta, Thursday (Nov.23, 2023).

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For this reason, Perry emphasized that determining current interest rate policy does not only consider current inflation. Perry said this was done because he also saw the impact of inflation itself. "The impact of interest rate on inflation takes approximately four to six quarters," he added.

Perry admitted that inflation is currently low and quite good. Even so, Perry emphasized that if BI only consider domestic inflation, there is still enough space to reduce interest rate.