No: 28/90/DKom
Global uncertainty, particularly stemming from geopolitical dynamics in the Middle East, remains a key risk factor anticipated by Bank Indonesia. As a response to strengthen Rupiah exchange rate stability, Bank Indonesia has adjusted the term structure of market interest rates through higher yields on instruments, such as Bank Indonesia Rupiah Securities (SRBI). This strategy has been undertaken to maintain the attractiveness of domestic financial assets and support exchange rate stability to maintain solid domestic conditions. That was conveyed at a meeting between Bank Indonesia Governor, Perry Warjiyo, and several investors in Singapore (28/04/26). Such meetings are conducted on an ongoing basis to provide investors with solid information concerning Indonesia's economic fundamentals and outlook, thereby strengthening investor confidence and attracting foreign capital inflows.
Governor Perry explained that the Bank Indonesia policy framework has evolved from the lessons learned during past crises. Currently, Bank Indonesia implements an integrated monetary policy mix comprising three main pillars. First, interest rate policy to maintain Rupiah exchange rate stability and ensure inflation remains within the target corridor. Second, exchange rate stabilisation through intervention in the foreign exchange market to maintain external stability and prevent Rupiah depreciation from feeding through into higher prices. Third, domestic liquidity management to ensure adequate liquidity in the financial system. These three instruments are implemented simultaneously and are mutually complementary, thus reflecting a more flexible and adaptive approach to global dynamics.
Monetary and fiscal policy synergy also strengthens domestic economic resilience. In discussions with investors, Governor Perry highlighted the close monetary-fiscal coordination through policy synergy to jointly maintain stability and boost growth. With such strong coordination, inflation in 2026 is projected to remain under control and within the 2.5±1% target corridor, while domestic economic growth is forecast within the 4.9-5.7% range. This reflects the resilience of the domestic economy in facing external pressures.
In addition to monetary policy, Governor Perry emphasised the role of macroprudential policy in supporting economic growth. Bank Indonesia continues strengthening Macroprudential Liquidity Incentive Policy (KLM) for banks that disburse loans to the Government's priority sectors, while accelerating reductions in lending rates. Furthermore, Bank Indonesia continues accelerating payment system digitalisation, including QRIS development, cross-border transactions using local currencies (LCT), as well as retail payment infrastructure, which further strengthens efficiency and financial inclusion.
Governor Perry reaffirmed his confidence that Indonesia has solid capacity to withstand global headwinds, supported by close fiscal and monetary policy coordination, as well as an increasingly mature and adaptive policy framework. Moreover, Bank Indonesia will continue to maintain stability as the overarching priority, while supporting economic growth through a data-dependent, forward-looking and responsive approach to global dynamics.
Based on such solid foundations, the investor meeting emphasised that Indonesia remains an attractive investment destination, supported by strong fundamentals and credible policy.
Jakarta, 28th April 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
