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Indonesia CPI Inflation 2.57% y-o-y (consensus 2.55%) in Jan-24

- Indonesia's CPI inflation stood at 2.57% y-o-y in January 2024, broadly in line with the consensus estimate of 2.55% and the previous 2.61% pace.
- The current inflation rate is 0.89pp below the one-year average, showing a successfully sustained steadying at a lower level.

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.