BI Holds Interest Rates - APBN Deficit Maintained, Airlangga: Positive Signal

Jakarta, CNBC Indonesia - The Indonesian government supports Bank Indonesia’s decision to once again maintain the benchmark BI Rate at 4.75% in April 2026. This level has been held by BI for seven consecutive months to maintain exchange rate stability. Coordinating Minister for the Economy Airlangga Hartarto stated that the central bank’s retention of the benchmark interest rate is a positive signal for financial markets amid high global uncertainties due to conflicts in the Middle East. “BI maintaining the BI Rate is a positive signal,” said Airlangga during a press conference on first-quarter 2026 investment realisation on Thursday (23/4/2026). He emphasised that, in addition to monetary policy capable of managing global pressures, the government has so far managed to keep the state budget deficit at a low level of 0.93% of GDP. According to him, this fiscal management capability also serves as a good signal to domestic and foreign economic actors that the government can continue measured fiscal expansion, even as global economic pressures begin to drive up prices, particularly for energy commodities. “The APBN deficit is maintained at 0.93% of GDP, so fiscal discipline is upheld amid measured expansion,” he explained. Foreign financial institutions like JPMorgan, he said, have also affirmed this positive signal by describing Indonesia as a country with high resilience, including energy resilience despite disruptions to major global energy routes such as the Strait of Hormuz due to the Iran-US-Israel war in the Middle East region. “Recently, JPMorgan also released a report stating that Indonesia is a country with energy resilience, meaning Indonesia is the second country after South Africa with resilience against energy shocks,” he explained.