BANDUNG - The Board of Governors' Meeting (RDG) of Bank Indonesia on March 20-21 2019 decided to maintain a 7-day Reverse Repo Rate (Bl7DRR) of 6.00%, a Deposit Facility interest rate of 5.25%, and a Lending Facility interest rate at 6.75%.
This decision is consistent with efforts to strengthen the external stability of the economy, particularly to control the current account deficit within safe limits and maintain the attractiveness of domestic financial assets.
While interest rate and exchange rate policies remain focused on external stability, Bank Indonesia pursues other policies that are more accommodating to encourage domestic demand related to monetary operations strategies, macroprudential policies, accelerated financial market deepening policies and strengthen payment system policies to support inclusive economic and financial activities . Coordination with the Government and related authorities also continues to be strengthened to maintain economic stability, particularly in controlling inflation and the current account deficit, and maintaining the momentum of future economic growth, particularly in boosting domestic demand and maintaining external stability by encouraging exports, tourism and foreign capital flows.
"Meanwhile, West Java's economic growth in the first quarter of 2019 is predicted to remain solid in the range of 5.2% 5.6% (yoy)," said BI West Java Representative Head Doni P Joewono in his office on Monday (25/3).
The strong economic growth in West Java is still supported by internal factors, especially domestic demand. Household consumption (RT) is still the main pillar of growth, driven by rising wages and preparation for 2019 elections.
In addition, the investment component is also expected to increase in the first quarter of 2019 which is still driven by building investment, in line with the government's continuing infrastructure projects. On the other hand, exports are predicted to slow down due to external factors related to world economic growth and weakening world trade and declining commodity price trends. Jo