#Monetary
Purbaya blames fiscal, monetary missteps for recent protests
Minister of Finance, Purbaya Yudhi Sadewa, has attributed recent waves of public protests across Indonesia to long-standing policy missteps in the country’s fiscal and monetary management, calling for urgent corrections to avoid further economic strain.
Economists warn of risks as BI ramps up bond purchases to support Prabowo’s agenda
The Indonesian Central Bank (BI) has purchased Rp200 trillion (US$12.9 billion) worth of government bonds as of early September to support President Prabowo Subianto’s Asta Cita economic programs, but economists are warning of potential long-term risks to monetary credibility and market stability.
House confirms Ricky Perdana Gozali as New BI Deputy Governor
The House of Representatives (DPR) has approved Ricky Perdana Gozali as Deputy Governor of the Indonesian Central Bank (BI) for the 2025–2030 term following a fit and proper test conducted by the House’s finance and monetary affairs Commission XI.
BI cuts benchmark rate to support growth in the face of global uncertainty
The Indonesian Central Bank (BI) announced a 25-basis point cut to its benchmark interest rate, bringing the BI 7-Day Reverse Repo Rate down to 5.50 percent, its first reduction in four months as the central bank seeks to maintain inflation within target, while boosting economic growth amid increasing global uncertainty.
Fed holds rates steady, limiting BI’s room for monetary easing
The U.S. Federal Reserve has once again opted to maintain its benchmark interest rate at 4.25–4.5 percent, a move analysts say narrows the policy space for the Indonesian Central Bank (BI) to cut interest rates amid an ongoing slowdown in domestic economy.
U.S. tariff policy deemed counterproductive, pressures rupiah, threatens exports
The increase in import tariffs by United States President Donald J. Trump against a number of trading partner countries is considered to have put great pressure on Indonesia's economic stability, having a direct impact on the rupiah exchange rate and national export performance, says a researcher.
BI announces aggressive intervention to stabilize rupiah after IdulFitri
The Indonesian Central Bank (BI) has hinted at conducting aggressive market intervention to stabilize the rupiah exchange rate which was depressed during the long IdulFitri holiday.
BI maintains interest rate at 5.75 percent amidst market turmoil
The Indonesian Central Bank (BI) has decided to maintain its benchmark interest rate at 5.75 percent in the March 2025 Board of Governors Meeting (RDG) as an effort to maintain the stability of the rupiah exchange rate and anticipate the continuing high global uncertainty.
BI's independence questioned for disbursing Rp130 trillion on Housing program
An economist has criticized the support by the Indonesian Central Bank (BI) on the affordable housing program initiated by the government of President Prabowo Subianto, saying that it would reduce the bank’s credibility as an independent monetary authority.
Rupiah drops to lowest level in five years, BI to intervene the market
The rupiah exchange rate against the United States (U.S.) dollar has weakened sharply again due to global sentiment, with the Indonesian Central Bank (BI) revealing that the rupiah depreciation was triggered by the trade tariff policy announced by President Donald Trump.