Bank Indonesia Projected to Hold Interest Rate at 4.75 Per Cent; Analyst Says Market Will Respond Positively, But...
Jakarta — The Board of Governors' Meeting (RDG) of Bank Indonesia (BI) has become the primary focus of market participants this week, with the central bank widely predicted to hold its benchmark interest rate (BI-Rate) steady.
In 2025, BI carried out five cuts to the BI-Rate. The benchmark rate currently stands at 4.75 per cent.
The Phintraco Sekuritas analyst team indicated that investors expect the central bank to maintain the rate at its current level. BI is also expected to hold the Deposit Facility rate at 3.75 per cent and the Lending Facility rate at 5.5 per cent.
The meeting is also set to report January 2026 credit growth data, which is projected to remain relatively stable at around 9.6 per cent.
Capital market observer Reydi Octa said BI's dovish stance of holding interest rates steady is likely to draw a positive response from market participants. According to him, the decision not to alter the benchmark rate provides liquidity certainty whilst simultaneously safeguarding the rupiah exchange rate.
"The impact is more on short-term sentiment rather than directly changing the trend," Reydi said, as quoted by Antara on Wednesday, 18 February 2026.
Beyond the BI board meeting, Reydi noted that market participants are also awaiting a number of global data points, ranging from the direction of global interest rate policy by the US Federal Reserve, foreign fund flows, rupiah stability, and clarity on domestic policy — including Indonesian market reform and free float issues.
Reydi also highlighted the rise in the Jakarta Composite Index (IHSG), driven by a combination of improving global sentiment, particularly the strengthening of regional bourses and stable commodity prices. On the domestic front, positive sentiment stemmed from expectations of macroeconomic stability and reforms by the Indonesia Stock Exchange (BEI) and the Financial Services Authority (OJK).
The IHSG strengthened 1.19 per cent, or 97.96 points, to reach 8,310.23 at the close of trading on Wednesday afternoon, 18 February 2026. Transaction value was recorded at Rp 25.33 trillion, with a total of 3.20 million transactions.
All stock sectors posted gains, led by the transportation sector with a rise of 3.25 per cent. Significant increases were also recorded in the energy sector at 2.45 per cent, the cyclical consumer sector up 2.00 per cent, and the infrastructure sector climbing 1.94 per cent.
In 2025, BI carried out five cuts to the BI-Rate. The benchmark rate currently stands at 4.75 per cent.
The Phintraco Sekuritas analyst team indicated that investors expect the central bank to maintain the rate at its current level. BI is also expected to hold the Deposit Facility rate at 3.75 per cent and the Lending Facility rate at 5.5 per cent.
The meeting is also set to report January 2026 credit growth data, which is projected to remain relatively stable at around 9.6 per cent.
Capital market observer Reydi Octa said BI's dovish stance of holding interest rates steady is likely to draw a positive response from market participants. According to him, the decision not to alter the benchmark rate provides liquidity certainty whilst simultaneously safeguarding the rupiah exchange rate.
"The impact is more on short-term sentiment rather than directly changing the trend," Reydi said, as quoted by Antara on Wednesday, 18 February 2026.
Beyond the BI board meeting, Reydi noted that market participants are also awaiting a number of global data points, ranging from the direction of global interest rate policy by the US Federal Reserve, foreign fund flows, rupiah stability, and clarity on domestic policy — including Indonesian market reform and free float issues.
Reydi also highlighted the rise in the Jakarta Composite Index (IHSG), driven by a combination of improving global sentiment, particularly the strengthening of regional bourses and stable commodity prices. On the domestic front, positive sentiment stemmed from expectations of macroeconomic stability and reforms by the Indonesia Stock Exchange (BEI) and the Financial Services Authority (OJK).
The IHSG strengthened 1.19 per cent, or 97.96 points, to reach 8,310.23 at the close of trading on Wednesday afternoon, 18 February 2026. Transaction value was recorded at Rp 25.33 trillion, with a total of 3.20 million transactions.
All stock sectors posted gains, led by the transportation sector with a rise of 3.25 per cent. Significant increases were also recorded in the energy sector at 2.45 per cent, the cyclical consumer sector up 2.00 per cent, and the infrastructure sector climbing 1.94 per cent.