The Bank of Indonesia still has inflation as the ultimate goal of its policy. Despite global market fluctuations, inflation is expected to remain within the target range of 1.5%-3.5%. Firman Mokhtar, executive director of the central bank's economic and monetary policy, told reporters in Jakarta on Friday that the central bank continues to monitor the trend of the Indonesian rupiah, and there is no risk that the current exchange rate level will break through the inflation target. The Bank of Indonesia will continue to optimize monetary policy tools, enhance external resilience, and adopt “necessary policy adjustments” to maintain stability and support economic growth. The central bank has increased hedging incentives to attract capital inflows and stabilize the Indonesian rupiah exchange rate. He said that this type of incentive tool is an aid, cannot replace policy interest rates, and jointly serve to anchor inflation targets.

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