BI cut interest rates a total of 125 basis points and pumped more than $50 billion of liquidity into the financial system last year to help the economy weather the impact of the coronavirus pandemic.
Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 4.00pc, as expected in a Reuters poll. It has delivered 100 basis points of rate cuts so far this year.
The measures were aimed at "strengthening BI's function as lender of the last resort" while also maintaining good corporate governance, the central bank said.
It has also agreed with the government a $40 billion fiscal deficit financing scheme that involves the central bank buying $28 billion of bonds while relinquishing interest payments.
"We're racing with time on setting up policies ... to prevent us falling into a deep recession," Juda Agung, an assistant to the governor of Bank Indonesia, told a online seminar.
"BI is in the market, but the most important thing is market mechanism works and many are selling their foreign currencies. It's just a matter of finding the balance because suppliers want to sell at higher levels,"
Bank Indonesia (BI) acted as regulator and supervisor of banks in Southeast Asia’s largest economy until the end of 2013 when the Financial Services Authority (OJK) assumed the role.
Hendarsah said the downturn in Indonesian financial markets was due to falling US equity market on fear of a second wave of coronavirus infections there.