At its 8 December monetary policy meeting, the Central Bank kept the benchmark interest rate at a record low 6.00%. The decision followed a surprising 50 basis point interest rate cut in the previous month, and was expected by the market. By maintaining interest rates unchanged, monetary authorities took into consideration prevailing uncertainty in the financial markets as well as slowing global demand. That said, Bank Indonesia highlighted the performance of the domestic economy, claiming it is ?supported by well-maintained macroeconomic and financial system stability.? Monetary authorities predict overall economic growth in 2011 to reach 6.5%, although they expect it to decelerate slightly in 2012. Regarding price developments, inflation continued to moderate in November and fell to 4.2% in November, situating it near the lower band of the Central Bank's inflation target of 5.0% 1% for this year. The Bank projects that inflation will also remain within the target in 2012 but remains vigilant on upside risks such as food price inflation (especially rice) and the volatility of the Indonesian rupiah.
Indonesia Monetary Policy
Central Bank leaves interest rates unchanged
December 8, 2011
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Indonesia Economic News
October 17, 2016
Indonesia’s trade surplus rose in September to a 14-month high as imports deteriorated.
October 12, 2016
Retail sales in August expanded 14.4% over the same month last year, according to Bank Indonesia’s Retail Sales Survey (RSS).
October 3, 2016
The manufacturing Purchasing Managers’ Index (PMI) rose from 50.4 in August to 50.9 in September, according to a release provided by Nikkei and IHS Markit.
October 3, 2016
In September, consumer prices increased 0.22% from the previous month, which contrasted the 0.02% fall recorded in August.
September 22, 2016
At its 21–22 September monetary policy meeting, Bank Indonesia decided to cut the BI seven-day Reverse Repo rate (BI seven-day RR rate) from 5.25% to 5.00%.