Simalungun. Bank Indonesia (BI) will continue to prioritize rupiah stability and inflation control while supporting economic growth, Acting Governor Destry Damayanti said on Friday, as global financial uncertainty continues to weigh on emerging markets.
Destry said uncertainty remains elevated even though the US Federal Reserve has signaled that it is unlikely to raise interest rates further, as financial markets expect borrowing costs to remain high for longer.
“The environment of high interest rates and elevated US Treasury yields will continue to affect emerging markets such as Indonesia. Naturally, this will influence Bank Indonesia’s policy decisions,” she said during a meeting with journalists in Simalungun, North Sumatra.
She said maintaining rupiah stability and keeping inflation under control remain the central bank’s immediate priorities. Reflecting that assessment, BI kept its benchmark BI-Rate unchanged at 5.75% at its July 21–22 policy meeting.
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“We are still monitoring volatility in domestic financial assets, including government bonds and Bank Indonesia Rupiah Securities (SRBI). We are also closely watching food inflation,” Destry said.
She added that Indonesia needs sustained foreign capital inflows to help stabilize the rupiah. Following a cumulative 100-basis-point increase in the BI-Rate during May and June, foreign inflows into government bonds and SRBI reached Rp 195 trillion (about $10 billion) this week, she said.
“These inflows are crucial for strengthening our foreign exchange reserves and enabling us to manage the rupiah more effectively,” she said.
Beyond monetary policy, Destry said BI continues to work with the government to curb food inflation through programs that improve supply and stabilize prices.
Among the initiatives is a nationwide food price stabilization campaign, including subsidized food markets that sell staple goods — particularly rice — below prevailing market prices.
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