In the monetary sector, an historically low policy rate has been maintained along with rupiah exchange rate stability and liquidity injections through quantitative easing. The low policy rate will be maintained until there are indications of rising inflation. Since 2020, Bank Indonesia has lowered the BI7DRR policy rate 6 (six) times to 3.50%, the lowest in history.
The vision behind the banking union is to prevent crises like the one seen in recent years and to mitigate the impact if a crisis should, nevertheless, arise. The aim is to shield developments in the financial sector from developments in public finances in individual member states – and vice versa – and increase financial stability.