Bank Indonesia Projected to Hold BI-Rate at 4.75 Percent in February 2026 RDG

JAKARTA - Bank Permata Chief Economist Josua Pardede predicts that Bank Indonesia (BI) will maintain the BI-Rate at the level of 4.75 percent at the February 2026 Governor's Council Meeting (RDG).

According to him, the decision is part of BI's continued steps to maintain the stability of the Rupiah exchange rate amid increasing risks in the global financial market.

"Bank Indonesia (BI) is expected to maintain the BI interest rate at 4.75 percent at the February 2026 RDG as part of its ongoing efforts to maintain the stability of the Rupiah in the midst of increased financial market risks," he said in a statement, Thursday, February 19.

He added that market pressure emerged after MSCI's warning regarding the free float issue, as well as Moody's revision which lowered Indonesia's debt outlook from stable to negative.

According to him, this condition is considered potentially encouraging an increase in risk premiums and increasing the volatility of capital flows.

Josua added that in this situation, BI is expected to continue to prioritize exchange rate stability and maintain investor confidence rather than easing monetary policy in the near future.

"So the room for cutting the policy interest rate remains limited at least until external pressures subside and market sentiment improves," he said.