Bank Indonesia Maintains BI Rate at 4.75 Per Cent, Rupiah Strengthens
Bank Indonesia (BI) has decided to maintain its benchmark interest rate (BI Rate) at 4.75 per cent following its Board of Governors Meeting (RDG) in March 2026. The decision was taken to protect the stability of the rupiah’s exchange rate amid heightened global uncertainty resulting from the Middle Eastern conflict and to ensure inflation remains within its 2.5±1 per cent target.
“The Bank Indonesia Board of Governors meeting on 16–17 March 2026 decided to maintain the BI Rate at 4.75 per cent, the deposit facility rate at 3.75 per cent, and the lending facility rate at 5.50 per cent,” said BI Governor Perry Warjito during a virtual press conference for the March 2026 RDG held on Tuesday (17/3/2026).
Warjito stated the decision is consistent with BI’s current policy focus, namely stabilisation of the rupiah’s exchange rate, particularly against the effects of the Middle Eastern conflict. The policy is also directed at supporting the achievement of inflation targets for 2026 and 2027, whilst promoting economic growth. Warjito stated BI will continue to monitor global developments stemming from the Middle Eastern conflict.
“This decision is to strengthen the stability of the rupiah’s exchange rate against the deteriorating global situation caused by the Middle Eastern conflict, and to maintain achievement of the 2026–2027 inflation target within 2.5±1 per cent,” he explained.
Warjito stated BI will continue to monitor the effectiveness of monetary easing transmission. The central bank will strengthen macroprudential policy to encourage a reduction in credit interest rates and increase banking liquidity so that financing distribution to the real sector can improve.
To accelerate policy transmission, BI is strengthening pro-market monetary operation strategies through management of the interest rate structure of monetary instruments and foreign currency swaps.
On the rupiah stabilisation front, BI confirmed intervention is conducted through the spot market, Domestic Non-Deliverable Forward (DNDF), and purchases of government securities in the secondary market to dampen exchange rate pressure.
Throughout 2025, BI cut its benchmark interest rate five times, each by 25 basis points, in January, May, July, August, and September. From an initial position of 6 per cent, the BI Rate has fallen a total of 125 basis points to reach 4.75 per cent by the end of 2025. In the first three months (January, February, and March) of 2026, BI has decided to maintain the benchmark interest rate at 4.75 per cent.