Bank of Indonesia has published a summary of Governor Perry Warjiyo's meeting with investors in Singapore, where he said the central bank has adjusted the term structure of market interest rates by increasing yields on instruments including Bank Indonesia Rupiah Securities to support rupiah exchange rate stability. The move was framed as a response to global uncertainty, particularly geopolitical tensions in the Middle East, and as a way to preserve the attractiveness of domestic financial assets. The remarks set out Bank Indonesia's current policy mix as three complementary pillars comprising interest rate policy to stabilise the rupiah and keep inflation within target, foreign exchange intervention to maintain external stability and limit pass-through from depreciation, and domestic liquidity management to ensure sufficient liquidity in the financial system. Perry also pointed to close monetary and fiscal policy coordination, with 2026 inflation projected within the 2.5±1% target corridor and growth forecast at 4.9-5.7%, alongside continued Macroprudential Liquidity Incentive Policy support for banks lending to priority sectors, efforts to accelerate reductions in lending rates, and payment system digitalisation including QRIS, local currency cross-border transactions, and retail payment infrastructure. Bank Indonesia said it will continue holding such investor meetings and will keep prioritising stability while supporting growth through a data-dependent and forward-looking policy approach.
Bank of Indonesia 2026-04-28
Bank of Indonesia tells investors it has raised SRBI yields to support rupiah exchange rate stability amid global uncertainty
Bank of Indonesia Governor Perry Warjiyo told investors in Singapore that the central bank has raised yields on instruments including Bank Indonesia Rupiah Securities to adjust the term structure of market interest rates and support rupiah stability amid global uncertainty. He outlined a three-pillar policy mix of interest rate policy, foreign exchange intervention, and domestic liquidity management, underpinned by monetary-fiscal coordination, projected 2026 inflation within the 2.5±1% target, growth of 4.9–5.7%, macroprudential liquidity incentives, and payment system digitalisation.