- BI kept its policy rate at 5.75% in February 2025, signaling caution amid expectations of a delayed Fed rate cut and significant equity outflows.
- To support economic growth, BI introduced an additional round of the Macroprudential Liquidity Incentive (KLM) for the housing sector, allowing banks to lower their reserve requirement ratio (RRR) to as little as 4%, down from the standard 9%.
- BI also reaffirmed its commitment to bond purchases, which could add liquidity into the financial system.
- BI (in concert with the government) also announced a revision of the DHE policy, now requiring 100% of DHE from natural resources to be held domestically for 12 months starting Mar 1st. This measure is expected to improve FX liquidity and support Rupiah stability.
