Bank Indonesia Holds Reference Interest Rate at 4.75 Percent amid Global Pressure
Bank Indonesia (BI) decided to maintain the benchmark interest rate or BI-Rate at 4.75 percent.
In addition, BI also maintained the deposit facility interest rate and the lending facility interest rate at 3.75 percent and 5.50 percent, respectively.
BI Governor Perry Warjiyo said BI decided to maintain the BI-Rate or reference interest rate at 4.75 percent.
"Considering the assessment of prospects and also various global and domestic challenges, especially the impact of the Middle East war. The Bank Indonesia Board of Governors (RDG) meeting on March 16-17, 2026 decided to maintain the BI-Rate at 4.75 percent," he said in a press conference, Tuesday, March 17.
According to Perry, this decision is to strengthen the stability of the rupiah exchange rate from the impact of the worsening global conditions due to the war in the Middle East and maintaining the achievement of the 2026-2027 inflation target within the target of 2.5 percent plus minus 1 percent.
Looking ahead, Perry said Bank Indonesia will continue to optimize various monetary policy instruments to strengthen external resilience, especially in anticipating the possibility of an escalation of the conflict in the Middle East.
In addition, he said BI is also ready to make the necessary policy adjustments to maintain the stability of the national economy.
Meanwhile, he added that macroprudential policies would continue to be strengthened to encourage economic growth, especially through increased credit distribution to the real sector while maintaining financial system stability.
Perry also added that the payment system policy is aimed at supporting economic activities through strengthening synergies and accelerating digitization.
According to him, this includes strengthening the industrial structure, payment systems, as well as increasing the reliability and resilience of payment infrastructure.
"The direction of the mix of macroprudential monetary policy and payment systems in maintaining stability and also contributing to sustainable economic growth," he said.