"Monetary policy remains accommodative and is consistent with controlled inflation in the target corridor, maintained external stability as well as efforts to maintain domestic economic growth momentum against a backdrop of global economic moderation," BI Governor Perry Warjiyo told a press conference here on Thursday, November 21, 2019.
Bank Indonesia has also agreed to lower the minimum Rupiah Reserve Requirements for Conventional Commercial Banks and Islamic Banks/Islamic Business Units by 50 basis points to 5.5 percent and 4.0 percent respectively, while holding the average reserve requirements at 3.0 percent, effective from 2nd January 2020.
"The policy move was taken to ensure adequate additional liquidity in the banking system to increase financing and support economic growth," he explained.
"The prevailing monetary operations strategy was further strengthened to maintain adequate liquidity and facilitate effective transmission of the accommodative policy mix," he added.
Going forward, the central bank will monitor domestic and global economic development in using its room to implement an accommodative policy mix in order to maintain controlled inflation and external stability as well as to support economic growth momentum.
Furthermore, coordination between the central bank, the government and other relevant authorities will be strengthened in order to maintain economic stability and catalyse domestic demand, while boosting exports and tourism and attracting foreign capital flows, including Foreign Direct Investment (FDI).