Bank Indonesia Holds Reference Interest Rate Of 5.75 Percent

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Aris Nurjani/VOI)

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 said he decided to maintain the benchmark interest rate at the level of 5.75 percent.

"The Meeting of the Board of Governors (RDG) of Bank Indonesia on February 18 and 19, 2025 decided to maintain the BI-Rate by 5.75 percent," Perry said at a press conference, Wednesday, February 19.

According to Perry, this decision is consistent with efforts to keep the inflation forecast for 2025 and 2026 under control in the target set by the government at 2.5 percent plus minus 1 percent.

In addition, the stability of the rupiah exchange rate which is in accordance with the fundamentals amidst global uncertainty is still high and contributes to economic growth.

In the future, Perry said that Bank Indonesia will continue to pay close attention to the prospects for inflation and economic growth in utilizing the space for lowering the BI Rate interest rate by considering the movement of the rupiah exchange rate.

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

"The policy of increasing macroprudential liquidity incentives is to encourage bank financing credit in priority sectors for growth and job creation in line with the government's asta program," he said.

Perry said that payment system policies were also directed to support 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.

He conveyed the direction of the mix of monetary, macroprudential, and payment systems to maintain stability in order to strengthen sustainable economic growth.