The central bank, Bank Indonesia (BI), held its interest rate unchanged at 5.75% for the eighth consecutive time during its September meeting, confirming market expectations, and saying that the current policy decision is enough to keep inflation controlled within the targeted range for this year and next year. Also, both rates for the overnight deposit facility and the lending facility were maintained at 5.00% and 6.50%, respectively. Policymakers also remained focused on controlling the stability of the rupiah, amid renewed pressures induced by global financial market uncertainties. Meanwhile, inflation in August rose to 3.27%, but still within the central bank’s target range of 2% to 4%, and the domestic economy remained strong, maintaining its GDP growth outlook for 2023 between 4.5% to 5.3%.
