In August 2016, Bank Indonesia implemented a new reference interest rate, namely the BI 7-day Repo Rate with the lower border of the corridor (Deposit Facilities) and the upper limit of the corridor (Lending Facilities) 75 bps below and above the 7-day BI, respectively Repo Rate. This is the right step because it will make BI's policy direction easier for the market to understand. Apart from that, the market can assess whether BI achieves the short-term target, namely the 7-day BI Repo Rate Every month.
