{
  "id": 17720705,
  "title": "Can BI support growth without sacrificing the rupiah?",
  "url": "https://urgent.news/2026/11/02/can-bi-support-growth-without-sacrificing-the-rupiah-17720705",
  "topic": "science",
  "section": "Science",
  "published": "2026-11-02T01:08:08.000Z",
  "source": {
    "name": "The Jakarta Post Academia",
    "slug": "the-jakarta-post-academia",
    "url": "https://www.thejakartapost.com/opinion/2026/11/02/can-bi-support-growth-without-sacrificing-the-rupiah.html"
  },
  "original_language": "en",
  "account": "Bank Indonesia (BI) is attempting a multi-pronged strategy to boost domestic growth while safeguarding the rupiah's stability, according to their Board of Governors meeting held on October 20-21, 2026.\n\nRather than adjusting its benchmark interest rate, the central bank maintained the BI-Rate at 5.75 percent, increased the Deposit Facility (DF) rate to 5 percent, and began reducing banks’ reserve requirements. This approach aims to offer banks more flexibility for credit expansion.\n\nSimultaneously, BI bolstered its foreign exchange stabilization strategy through spot intervention, offshore non-deliverable forwards (NDFs) and domestic non-deliverable forwards (DNDFs).\n\nThe central bank's varied approach reflects a common challenge for emerging market central banks, namely, how to stimulate economic activity without detrimentally impacting the currency.\n\nThese measures indicate a more nuanced approach to monetary policy. The lowering of reserve requirements allows for credit expansion, while the higher DF rate supports short-term money market rates and foreign exchange interventions work to limit excessive rupiah volatility.\n\nWhile this combination provides greater policy flexibility, it also poses a risk: will the effects of one instrument compromise the objectives of another?",
  "summary": "Bank Indonesia is taking a high-stakes gamble with a multi-tool strategy to spur domestic growth while defending the rupiah. But can its competing policy instruments avoid canceling each other out?",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}