REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia on Thursday raised its benchmark interest rate by 0.25 percentage point to 5.75 percent. The decision was made a day after the U.S. Federal Reserve raised its fund rate.

"This is consistent with the commitment to reducing the current account deficit to a safe level and to make the country's financial market more attractive, give greater attraction to Indonesian financial market," Governor of the Indonesian Central Bank Perry Warjiyo said in a short press conference after a monthly meeting of the central bank here on Thursday.

Meanwhile, Finance Minister Sri Mulyani said Indonesia's economy is flexible and has enough resilience against external turbulence without having to take a drastic change in policy.

"However, there would be absorption of the change and for that consistency in fiscal, monetary and real sectors is a positive signal and we would continue to do that," Sri Mulyani said after a national coordination meeting at the Tourism Ministry here on Thursday.

Sri Mulyani said the government and related authorities already took consistent steps to give signals for economic players. She said before the Fed raised its fund rate on Wednesday she already had communications with the economic players that there would be change in the monetary policy of U.S. Central Bank. Communications were also made about a healthy state budget.

"Until mid September 2018, the primary balance was positive or surplus. Non-economic change is not in our control," she said.

The U.S. Central Bank raised its fund rate by 25 basis points on Wednesday, its third increase this year.

When the share prices fell in the Wall Street after the Fed fund rate rise was announced , the index of the Indonesian Stock Exchange (IHSG) rose 14.68 points or 0.25 percent to 5,887.95 points on Thursday's opening. Meanwhile, the rupiah traded at the level of 14,908 per U.S. dollar losing 17 points from earlier level of 14,891 per dollar.

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