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

• Bank Indonesia’s decision to maintain the BI7DRR at 6.00%, in alignment with economic consensus, balances domestic economic stability with global economic challenges, particularly the high global uncertainty and the impact on the Rupiah.
• Inflation control within the target range and Rupiah exchange rate stability are pivotal for future policy decisions, with a close eye on global economic developments and their spillover effects.
• The use of innovative monetary instruments, including SRBI and SVBI, will be key in Bank Indonesia’s future strategies, focusing on money market deepening and attracting foreign capital inflows to support economic resilience.

Indonesia GDP Growth 4.94% y-o-y (consensus 5.05%) in Q3-23

- Indonesia's GDP growth in Q3-23 is 4.94% y-o-y, showing a slight decline from the previous quarter, 0.1pp under the consensus, and marking the lowest growth since Q3-21.
- Despite the slight deceleration, the Q3-23 GDP growth remains above the long-run average, indicating resilience in the Indonesian economy. The brisk q-o-q growth rate of 1.6% highlights ongoing stability and recovery.

Indonesia CPI Inflation 2.56% y-o-y (consensus 2.6%) in Oct-23

- Indonesia's CPI inflation rate increased to 2.56% y-o-y in October 2023, as expected, albeit only reversing part of September's fall.
- Despite the increase, the October inflation rate is 1.58pp below the one-year average, indicating a sustained easing of inflationary pressures recently.

Indonesia M2 Money Supply 6.0% y-o-y in Sep-23

- Indonesia's M2 Money Supply grew at a rate of 6.0% year-on-year in September 2023, indicating a slight increase compared to the previous period to only the highest rate since July 2023.
- However, this growth rate is 1.18 percentage points below the one-year average and 3.44 percentage points below the long-run average, suggesting a deviation from historical trends.