Bank Indonesia Candidate Promises Pro-Growth Policies While Ensuring Stability

Destry Damayanti, the Senior Deputy Governor and candidate for the top position at Bank Indonesia (BI), has promised to steer the central bank toward policies that foster economic growth if appointed. While maintaining the stability of the rupiah remains a core objective, Damayanti intends to create more room for economic expansion.

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BI rate will be directed preemptively and forward looking to maintain rupiah stability.

"BI rate will be directed preemptively and forward-looking to maintain rupiah stability," Damayanti stated during her confirmation hearing at the House of Representatives' Commission XI. She elaborated that the rupiah's exchange rate stabilization would be further bolstered by "smart interventions." Additionally, market-oriented monetary operations will be optimized to enhance policy transmission and ensure liquidity availability across money markets, banking, and the real sector.

Beyond monetary policy, Damayanti champions a more pro-growth macroprudential policy. She plans to utilize macroprudential instruments to encourage financing, especially for priority sectors. Damayanti highlighted that Indonesia's economic growth still has significant potential, noting that undisbursed loans currently stand at Rp 2,548 trillion, or 21.8 percent of the total loan ceiling. "Credit growth can still be further encouraged by optimizing undisbursed loans... and efforts to strengthen public purchasing power," she said.

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Credit growth can still be further encouraged by optimizing undisbursed loans... and efforts to strengthen public purchasing power.

Damayanti also emphasized directing credit expansion towards micro, small, and medium-sized enterprises (MSMEs). This approach, she believes, will ensure that the central bank's policies not only maintain stability but also actively stimulate economic activity and boost consumer spending. She pointed to Indonesia's economic growth of 5.29 percent year-on-year in the second quarter of 2026 and inflation at 2.88 percent in July 2026, which remains within BI's target range.

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Maintaining stability alone is not enough. Bank Indonesia also needs to continue strengthening the policy mix to be able to support sustainable economic growth.