Bank Indonesia Unveils Comprehensive 2026 Policy Mix

Monetary Policy Adjustments

Bank Indonesia Governor Perry Warjiyo presented the central bank's comprehensive policy mix for 2026 during the annual Bank Indonesia Annual Meeting (PTBI). The monetary policy direction includes examining potential further reductions in the BI rate to stimulate economic growth while maintaining inflation control. Warjiyo stated that with inflation under control, BI will carefully consider additional rate cuts to support economic expansion.

Macroprudential Measures

The macroprudential policy will focus on maintaining a loose macroprudential stance to encourage higher bank credit growth, particularly to government priority sectors. BI plans to increase liquidity incentives to Rp423 trillion starting December 2025 for banks that quickly lower their interest rates. The central bank will also strengthen systemic surveillance to maintain financial system stability in coordination with other financial regulators.

Payment System Enhancements

In the realm of payment systems, BI is accelerating digitalization through its 'Satu Nusa, Satu Bangsa, Satu Bahasa' initiative, aligning with the Indonesia Payment System Blueprint 2030. Key initiatives include:

1. Developing the New BI-Fast infrastructure connected to industry fast payment systems
2. Modernizing the BI-RTGS (Real-Time Gross Settlement) system
3. Consolidating the payment industry into main and non-main categories
4. Expanding QRIS (Quick Response Code Indonesian Standard) to 60 million users and 45 million merchants, primarily UMKM
5. Exploring the issuance of digital Rupiah as the sole legal digital payment instrument

Foreign Exchange and Financial Market Development

BI plans to enhance foreign exchange market development through various measures including increasing foreign exchange transaction volumes to US$18 billion daily by 2030 and money market transactions to Rp81 trillion daily by 2030. The central bank will also strengthen cooperation with market participants and other stakeholders to develop the financial market infrastructure.

Institutional Transformation

On the institutional front, BI is committed to enhancing its digital capabilities through the Integrated Digital Center, supported by advanced data analytics and artificial intelligence capabilities. The bank will also maintain transparency through regular performance reporting to the President and DPR (People's Representative Council).