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Monetary Policy

The objective of Bank Indonesia is to achieve and maintain the stability of the rupiah. To achieve the objective, Bank Indonesia shall conduct monetary policies on a sustained, consistent, transparent basis, and taking into account the general economic policies of the government.

In establishing and implementing monetary policies, Bank Indonesia has the power to establish monetary targets by taking into account the inflation target; exercise monetary control by use of means that include but are not limited to the following: open market operations on both rupiah and foreign exchanges markets; setting of discount rates; setting of the statutory reserve requirement; regulating of credit or financing. Means of monetary control may also be operated on the basis of Sharia Principles.


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