BI Decides To Lower BI Rate At Level 5.75 Percent

JAKARTA - Bank Indonesia (BI) decided to maintain the benchmark interest rate or BI-Rate at 5.75 percent. In addition, it also maintains deposit facility interest rates and lending facility rates of 5 percent and 6.50 percent, respectively.

BI Governor Perry Warjiyo decided to lower the benchmark interest rate at the level of 5.75 percent as a step to be consistent with the focus of prostability monetary policy.

"The Meeting of the Board of Governors (RDG) of Bank Indonesia on January 14 and 15, 2025 decided to reduce the BI-Rate by 25 basis points to 5.75 percent, the deposit facility interest rate fell by 25 basis points to 5 percent and also the lending facility rate fell by 25 basis points to 6.50 percent," Perry said at a press conference, Wednesday, January 15.

According to Perry, this decision is consistent with the continued low inflation estimates in 2025 and 2026 which are controlled in the target of 2.5 percent plus minus 1 percent and maintained the rupiah exchange rate in accordance with the fundamentals in controlling inflation in its targets and the need for efforts to contribute to economic growth.

In the future, Perry said that Bank Indonesia will continue to lead monetary policy to maintain inflation in its targets and exchange rates according to fundamentals while still observing space to help boost economic growth according to the dynamics that occur in the global and national economy.

Meanwhile, Perry conveyed that macroprudential policies and payment systems were also continuously directed to support sustainable economic growth.

"The loose macroprudential policy continues to be pursued to encourage bank financing credit to priority sectors for growth and job creation, including MSMEs and the green economy, through strengthening KLM incentives starting January 2025 while still paying attention to the precautionary principle," he said.

According to Perry, payment system policies are also directed to contribute to growth, especially in the trade sector and MSMEs by strengthening the reliability of infrastructure and the industrial structure of payment systems, as well as expanding the acceptance of payment system digitization.

Perry said to maintain stability and support sustainable economic growth amid increasing uncertainty in global financial markets.

"Expanding the acceleration of payment system digitization, the direction of the monetary policy mix, macroprudentials, and payment systems to maintain stability in order to support sustainable economic growth," he concluded.