Bank Indonesia (BI) said that the decision to maintain the benchmark interest rate or BI-Rate at 5.50 percent is in line with the maintained inflation forecast for 2025 and 2026 within the target of 2.5 plus minus 1 percent.
In addition, this decision is also in line with the stability of the rupiah exchange rate in accordance with fundamentals amidst still high global uncertainty, as well as the need to continue to encourage economic growth.
"Going forward, Bank Indonesia will continue to monitor the scope for lowering the BI-Rate to encourage economic growth, while maintaining inflation in line with its target and exchange rate stability in line with its fundamentals," said BI Governor Perry Warjiyo in a press conference on the results of the BI Board of Governors Meeting (RDG) in June 2025.
In addition to deciding to keep the BI Rate at 5.5 percent, the BI Board of Governors Meeting (RDG) also decided to maintain the Deposit Facility interest rate at 4.75 percent and the Lending Facility interest rate at 6.25 percent.
Perry said that accommodative macroprudential policies continue to be optimized to support sustainable economic growth, with various strategies to encourage credit growth and increase the flexibility of liquidity management by banks.
Payment system policies are also directed at supporting economic growth through expanding digital payment acceptance, as well as strengthening infrastructure and consolidating the structure of the payment system industry.
The direction of the monetary, macroprudential and payment system policy mix to maintain stability in order to strengthen sustainable economic growth is supported by various policy steps.
One of these policies is strengthening the rupiah exchange rate stabilization strategy in accordance with fundamentals, especially through intervention in Non-Deliverable Forward (NDF) transactions in overseas markets as well as spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market.
"This strategy is accompanied by the purchase of Government Securities (SBN) in the secondary market to maintain financial market stability," Perry said.
