At a two-day meeting, the board of governors of Bank Indonesia also decided to keep the deposit rate unchanged at 5.25% and the lending rate at 6.75%.

“This decision is consistent with the monetary policy direction to ensure that inflation remains controlled within the target range of 1.5% to 3.5% for 2024 and 2025 while supporting sustainable economic growth,” said Perry at a press conference.

The central bank is focusing on short-term monetary policy and strengthening the stability of the rupiah exchange rate amid geopolitical conflicts that could lead to uncertainty in global financial markets.

Perry noted that a loose macroprudential policy remains in place to encourage bank lending to priority industries for growth and job creation while adhering to prudential principles.