Bank Indonesia Holds Key Interest Rate at 4.75 Percent

Bank Indonesia (BI) has decided to maintain the key interest rate, or BI-Rate, at 4.75 percent. This decision was taken during the Board of Governors’ Meeting (RDG) held on 21-22 April 2026.

“Based on various assessments of these prospects, the Bank Indonesia Board of Governors’ meeting on 21-22 April 2026 decided to maintain the BI-Rate at 4.75 percent,” said Perry during an online press conference on Wednesday, 22 April 2026. BI also decided to keep the deposit facility interest rate at 3.75 percent and the lending facility interest rate at 5.50 percent.

Perry stated that this decision remains consistent with efforts to enhance the effectiveness of the interest rate structure adjustment strategy for monetary operations instruments in strengthening exchange rate stabilisation against the worsening impact of the global economy due to the war in the Middle East. He indicated that BI is prepared to pursue further strengthening to maintain rupiah exchange rate stability and keep inflation for 2026-2027 within the target of 2.5 ± 1 percent.

Previously, the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia (LPEM UI), recommended that BI hold the key interest rate or BI-Rate at 4.75 percent. This is because the high inflation risks amid the surge in energy prices need to be considered.

“In this situation, we believe that Bank Indonesia needs to maintain the BI-Rate at 4.75 percent, prioritising external stability while monitoring developments in inflation pressures,” stated the LPEM FE UI research team in the Macroeconomic Analysis Series for the BI RDG released on Tuesday, 21 April 2026. LPEM FEB UI noted that although domestic inflation is easing, global uncertainties are increasing its risks. External shocks due to the conflict in the Middle East are also beginning to impact capital outflows and rupiah weakening.