BI Prediction Economist Holds Reference Interest Rate 5.5 Percent In June 2025

Illustration (Photo: Doc. ANTARA)

JAKARTA - Bank Permata economist Josua Pardede estimates that Bank Indonesia (BI) will continue to maintain BI-rate at the level of 5.5 percent in the Board of Governors' Meeting (RDG) in June 2025.

"BI is expected to focus on transmitting policy interest rates to bank loan interest rates to support domestic economic growth," he said in his statement, Wednesday, June 18.

In addition, he said that although uncertainty related to the trade war began to subside, geopolitical tensions in the Middle East were rising, potentially reciproducing global risk-off sentiment and putting new pressure on the Rupiah.

However, he considered, there is still room for BI to implement further policy interest rate cuts.

"It is supported by weakening economic growth, controlled inflation, the potential to cut interest rates by the Fed, and Indonesia's relatively strong external sector, as reflected in the controlled current account deficit (CAD)," he explained.

Josua estimates that BI will cut interest rates by 25 basis points in the third quarter of 2025, bring policy interest rates to 5.25 percent, and keep them at that level until the end of the year.