Central Bank Maintains BI Rate at 4.75 Per Cent
JAKARTA — Bank Indonesia (BI) has decided to maintain its benchmark interest rate (BI Rate) at 4.75 per cent during the Board of Governors Meeting in March 2026.
Consequently, the deposit facility rate remains at 3.75 per cent and the lending facility rate remains at 5.75 per cent.
BI Governor Perry Warjiyo stated that the decision was taken as a measure to strengthen the stability of the rupiah’s exchange rate from the deteriorating global conditions resulting from conflict in the Middle East.
Additionally, the decision also aims to support inflation this year and next year to remain in line with targets and to encourage economic growth in accordance with predetermined targets.
Perry said the decision was made after considering assessments, prospects, and various global and domestic challenges, particularly the impact of Middle Eastern conflict.
Going forward, the central bank will continue to optimise various monetary policy instruments to strengthen external resilience against possible escalation of Middle Eastern conflict, including taking necessary adjustment measures to remain consistent in maintaining national economic stability.
Perry added that for macroprudential policy, BI will strengthen by increasing credit growth financing to the real sector. However, it will remain attentive to the resilience of financial system stability.
Payment system policy will also continue to be directed to support inclusive economic growth through expanding digital payment acceptance, strengthening the payment system industry structure, and enhancing payment system infrastructure resilience.
“The direction of the monetary, macroprudential, and payment system policy mix in maintaining stability and supporting sustainable economic growth is also supported by other policy measures,” he said.
It is worth noting that BI reduced its benchmark interest rate five times throughout 2025, with a total reduction reaching 125 basis points from 6 per cent at the end of 2024 to 4.75 per cent.
Meanwhile, this year, BI continues to maintain the BI Rate at 4.75 per cent during January-March 2026.