\t\t\t\t\tJakarta (ANTARA) – Bank Indonesia (BI) Governor Perry Warjiyo has assured that Indonesia\u2019s economic growth remains stable, supported by resilient domestic demand, despite a cumulative 100-basis-point increase in the benchmark interest rate during the first half of this year.<\/p>\n
Speaking at an online press conference following the central bank\u2019s Board of Governors Meeting on Thursday, Warjiyo maintained BI\u2019s projection for Indonesia\u2019s economic growth this year in the range of 4.9 percent to 5.7 percent.<\/p>\n
His remarks came after the central bank raised its benchmark interest rate by 25 basis points to 5.75 percent, marking its third consecutive rate hike.<\/p>\n
Bank Indonesia began the year with the benchmark rate at 4.75 percent before increasing it in May and early June. The latest hike was aimed at safeguarding the rupiah amid global geopolitical uncertainties and financial market volatility.<\/p>\n
\n\u201cHousehold consumption remains solid, supported by accelerated government spending and sustained consumer confidence,\u201d Warjiyo said.<\/p>\n
He explained that stronger government consumption was driven by the continued implementation of national priority programs and faster state budget disbursement, particularly the payment of the 13th-month salary for State Civil Apparatus (ASN) employees and the distribution of social assistance to Beneficiary Families (KPM).<\/p>\n
Looking ahead, the governor said the government would continue optimizing various stimulus measures aimed at protecting household purchasing power and strengthening domestic demand as a key driver of economic growth.<\/p>\n
Meanwhile, rising investment activity is reflected in Indonesia\u2019s Purchasing Managers\u2019 Index (PMI), which remains in expansionary territory, supported primarily by construction-related investments in public infrastructure projects.<\/p>\n
\u201cOn the external front, exports must continue to be strengthened to capitalize on elevated global commodity prices amid slowing global economic growth prospects,\u201d Warjiyo said.<\/p>\n
He reaffirmed Bank Indonesia\u2019s commitment to optimizing its policy mix to strengthen economic stability and support sustainable growth. The strategy includes maintaining accommodative macroprudential policies and strengthening payment system frameworks to support digital economic activity and financial inclusion.<\/p>\n
Related news: BI hikes rate by 25 bps to stabilize rupiah amid global tensions<\/a><\/p>\n