The Bank of Indonesia (BI) held its interest rate unchanged at 6% for the third consecutive meeting in January 2024 to ensure inflation stays within the central bank’s 2.5±1% target range in 2024 while supporting economic growth and strengthening the stabilization of the rupiah. The central bank also held both the overnight deposit facility and the lending facility at 5.25% and 6.75%, respectively. Additionally, the central bank maintained its growth forecast for 2024 between 4.7% to 5%, supported by rising spending on elections and as the current government rushes to finish infrastructure projects. Policymakers also left their GDP growth forecasts for 2023 at 4.5% to 5.3%, boosted by household consumption, fixed capital investment, and government spending. Meanwhile, the current account forecast for 2023 was kept at around -0.4%-0.4% of GDP.
