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Indonesia Policy Rate 6.0% (consensus 6.0%) in Jan-24

• Bank Indonesia's decision to maintain the BI-Rate at 6.00% aligns with the economic consensus, balancing global economic moderation and robust domestic economic growth with a focus on Rupiah stability and inflation control.
• Inflation management within the target range and a strong Balance of Payments position, marked by sustained trade surplus and foreign capital inflows, will be central to future interest rate decisions.
• The continued use and optimization of innovative monetary instruments, including SRBI, SVBI, and SUVBI, will play a critical role in Bank Indonesia’s future strategies, influencing liquidity management, Rupiah stability, and the ability to attract foreign investments.

Indonesia CPI Inflation 2.61% y-o-y (consensus 2.7%) in Dec-23

- Indonesia's CPI inflation grew at a slower pace of 2.61% y-o-y in December 2023, lower than market expectations of 2.7%.
- The latest inflation change only reverses some of the rise in November 2023 but falls 1.08 percentage points below the one-year average, indicating a departure from recent trends.

Indonesia Policy Rate 6.0% (consensus 6.0%) in Dec-23

• Bank Indonesia's decision to maintain the BI-Rate at 6.00% reflects a balance between global economic headwinds and robust domestic economic growth, with a focus on stabilizing the Rupiah exchange rate.
• Controlled inflation within the target range and a strong Balance of Payments position, highlighted by trade surplus and healthy foreign capital inflows, will be central to future interest rate decisions.
• The continued use and optimization of innovative monetary instruments like SRBI, SVBI, and SUVBI will play a critical role in Bank Indonesia's monetary policy strategy, influencing liquidity management and the ability to attract foreign investments.

Indonesia CPI Inflation 2.86% y-o-y (consensus 2.7) in Nov-23

- Indonesia's CPI inflation in November 2023 exceeded market expectations by rising to 2.86% y-o-y, the highest since August 2023.
- The Core CPI measure, excluding food and energy prices, remained at 1.9% y-o-y, as expected.