Perry Warjiyo: BI Goes All Out to Maintain Stability and Drive Economic Growth Rate

JAKARTA, Investortrust— Bank Indonesia (BI) has reaffirmed its commitment to working with total effort to maintain economic stability while simultaneously driving national growth amidst persistently high global uncertainty. Together with the government and all stakeholders, BI is ensuring that all policy instruments will be directed toward safeguarding the rupiah exchange rate, controlling inflation, strengthening the financial system, and supporting business sector expansion.

"We want everyone to leave this room after this meeting concludes with the optimism that the Indonesian economy will continue to grow, the rupiah will strengthen, inflation will remain controlled, and credit will continue to rise," said Bank Indonesia Governor Perry Warjiyo during a discussion with the board of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), led by Kadin Indonesia Executive Chairman Anindya Novyan Bakrie, at the BI Building in Jakarta on Thursday (06/18/2026).

In the meeting, which was attended by BI Senior Deputy Governor Destry Damayanti, BI Deputy Governors, and the leadership lineup of Kadin Indonesia, Perry emphasized that BI will deploy every policy at its disposal to safeguard national economic stability and support the growth agenda as well as the various programs of President Prabowo Subianto.

"Our message is simple. First, be optimistic. Second, BI is going all out to maintain stability and drive economic growth. Third, we will continue to strengthen coordination with the government, the Ministry of Finance, and the Financial System Stability Committee (KSSK)," Perry stated.

According to him, BI has always prioritized a pro-business approach, not only toward the financial and banking industries but also toward the real sector. Supported by 46 representative offices spread across Indonesia, BI stands ready to strengthen synergy with Kadin down to the regional level to mobilize investment, exports, the processing industry, and MSMEs.

Perry noted that BI fully supports the government's various priority programs, including industrial downstreaming, investment strengthening, MSME development, and the people's economy. At the same time, however, BI must ensure macro-economic stability remains safeguarded so that various developmental achievements are not disrupted by global shocks.

"We fully support the policy line of Mr. President. When external pressures and financial market volatility occur, BI's duty is to ensure that stability is maintained so that the economic progress achieved is not eroded," he stressed.

Global Uncertainty

Executive Director and Head of the Economic and Monetary Policy Department of BI, Firman Mochtar, explained that the global economy still faces high uncertainty, even though the United States and Iran reached a temporary ceasefire agreement on June 14, 2026.

Global logistics disruptions, geopolitical tensions, and the lingering high prices of several strategic commodities are projected to weigh down global economic growth. BI projects global economic growth to slow to around 3.0% in 2026 from 3.4% in the previous year, while global inflation is projected to rise to 4.4%.

These conditions have prompted central banks in developed economies to maintain tight monetary policies. The hawkish stance of major global central banks, particularly the Federal Reserve, has caused the US dollar to strengthen and triggered capital flight from developing countries to developed ones. "These external pressures present a challenge for all emerging markets, including Indonesia," Firman said.

Nevertheless, Firman assessed that Indonesia's economic fundamentals remain strong. Household consumption is well-maintained, government fiscal stimulus is underway, the confidence level of the business world remains in expansionary territory, and investment continues to rise. BI forecasts Indonesia's economic growth this year to land within the range of 4.9%–5.7%.

Foreign Capital Begins to Flow In

To blunt external pressures, BI has reinforced its monetary policy mix since May 2026. After raising the BI Rate by 50 basis points in May and an unscheduled 25 basis points on June 9, BI once again hiked its benchmark interest rate by 25 basis points during the June Board of Governors Meeting to 5.75%.

Additionally, BI has intensified interventions in the foreign exchange market, increased the yields of Bank Indonesia Rupiah Securities (SRBI), expanded monetary operations, and provided various incentives to attract foreign capital inflows into the domestic financial market.

"The policies we have pursued are starting to show positive results. Foreign capital inflows into SRBI and Government Securities (SBN) are beginning to increase, the rupiah is strengthening, and foreign exchange reserves remain robust," Firman said.

Inflation also remains well under control. As of May 2026, annual inflation was recorded at 3.08%, sitting safely within BI's target range of 2.5% plus or minus 1%.

Credit Grows Double Digits

On the economic growth front, BI continues to deploy an accommodative macroprudential policy stance. Banking credit growth up to May 2026 was recorded at approximately 11.5% year-on-year, propelled by investment financing and the government's productive programs.

To accelerate banking intermediation, BI continues to expand its Macroprudential Liquidity Incentive Policy (KLM), which as of June 2026 has reached around Rp418 trillion. These incentives are granted to banks that channel financing into priority sectors such as downstreaming, MSMEs, food security, housing, and the green economy.

BI has also increased flexibility in managing banking liquidity and widened the Foreign Funding Ratio limit to broaden financing sources for productive sectors.

Remaining Optimistic

The Executive Chairman of Kadin Indonesia, Anindya Novyan Bakrie, welcomed BI's steps to preserve national economic stability. According to him, close communication between regulators and the business world is key to navigating global economic challenges. "We are optimistic that we can get through this situation. Signs of improvement are starting to emerge. The interest rate hikes carried out by BI are indeed intended to maintain stability, and we appreciate that step," said Anin, as Anindya Novyan Bakrie is colloquially called.

He emphasized that Kadin is ready to synergize with BI down to the regional level. As an organization that encompasses the entire Indonesian business community through a network spanning 514 regencies/cities and various business associations, Kadin stands ready to support the government's agenda in boosting investment, exports, downstreaming, and strengthening MSMEs.

According to Anindya, the business sector is currently continually striving to increase exports to expand the trade surplus and bolster the foreign exchange supply. On the other hand, Kadin is also pushing for the entry of foreign direct investment (FDI) to strengthen national industrial capacity.

"We see that optimism is still there. The challenges are indeed massive, but the opportunities are also wide open. With strong synergy between the government, BI, banking, and the business world, Indonesia has sufficient assets to maintain stability while accelerating economic growth," he concluded.