Jakarta, May 25 -- Bank Indonesia (BI) is confident that a 50 basis point (bps) increase in the benchmark interest rate (BI-Rate) to 5.25 percent will not burden MSME borrowers, as long as banking liquidity is maintained with the support of macroprudential policies.

"If, for example, the interest rate increases, but liquidity is maintained, I do not think the increase will further burden (MSMEs)," BI Senior Deputy Governor Destry Damayanti said on Monday.

According to her, support for MSMEs continues, especially with government programs providing various incentives and stimulus for MSMEs and low-income segments.

She explained that the central bank has a macroprudential policy that provides incentives through a reduction in the minimum ...