JAKARTA: Indonesia's central bank still sees room for easing monetary policy, but will keep an eye on inflation risks, a deputy governor said on Friday.
"If we look at domestic conditions and see conducive conditions, of course there is still some room for easing," Bank Indonesia Deputy Governor Perry Warjiyo told reporters.
"To push for growth, we are using liquidity more (and looking at) how to push liquidity so that the banking sector issues more credit," he added.
Warjiyo said loan growth in 2016 was likely around 9 percent.
The Financial Services Authority targets lending to increase 13.5 percent this year.
Bank Indonesia cut its benchmark interest rate six times in 2016, by a total of 150 basis points, in a bid to get banks to lend more and to lift the economic growth rate.
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