Lenders have been ordered by Bank Indonesia to keep aside some cash as reserves. The interest rate will be the same so that it will support growth. Around 8% should be kept aside for the deposits by lenders as primary reserves. The previous of 5% was being kept aside with the deposits but at present it is 8%. Secondary bank requirement has a combination of government bonds and Bank Indonesia certificates.

The secondary bank requirement was always maintained 2.5% and the reference rate was 6.5%. The largest economy of southeast Asia has not joined with any other Asian Nations for the sake of raising interest year. The reason behind refraining from other banks is to reach the annual growth of 6.6% which is the target of president Sushilo Bambang Yudhoyono. When the reserve requirement is adjusted it will help to serve as a precursor to the rate says economists.

A statutory reserve requirement has been used by Bank Indonesia for both commercial lenders to maintain liquidity. The inflation rate in Indonesia had raised up to 6.44% in the month of August which is the highest among the 16 months.The rupiah rate has risen about4.2% this year against the dollar which is the third performer residing outside Japan