Indonesia Watch: Sweeping policy moves on multiple fronts

Research evidence excerpt

Indonesia Watch: Sweeping policy moves on multiple fronts

BI said that growth considerations were taken into account in calibrating the magnitude

of policy rate hike. It continues to see GDP growth in 2026 within the forecasted 4.9-

5.7% range and signaled that it would step up complementary measures to support

growth. These include (1) maintaining double-digit M0 growth to ensure “ample” system

liquidity and (2) keeping macroprudential policy accommodative. On this front, newly

announced measures include (a) broadening the scope of securities eligible for

calculation under macroprudential ratios and (b) adding liquidity incentives for banks that

meet intermediation ratio targets.

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