Jakarta: President Joko "Jokowi" Widodo has praised Bank Indonesia (BI) officials for their efforts in controlling rupiah movements amid rising global uncertainties.
"We are all aware the difficulty of the situation," Jokowi said during a business forum on Tuesday.
"The rupiah has started to recover in the past two and three weeks," Jokowi said.
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The central bank decided to raise its 7-Day Reverse Repo Rate by 25 basis points (bps) to 6.00 percent this month. It also increased the Deposit Facility (DF) and Lending Facility (LF) rates by 25 bps to 5.25% and 6.75% respectively.
In order to maintain flexibility and distribution of liquidity in the banking industry, BI raised the average reserve requirement from 2% to 3%. Besides that, it also increased the macroprudential liquidity buffer that can be repoed to Bank Indonesia from 2% to 4%.
"The decision reflects Bank Indonesia’s ongoing efforts to lower current account deficit within a manageable threshold," BI said in a written statement received by Medcom.id.
"The policy rate hike is also aimed at strengthening the attractiveness of domestic financial markets by anticipating global policy rate hike in the next few months," it said.