Ahead Of RDG, Citi Indonesia Predicts BI Will Still Hold Interest Rates In November 2025

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) has started a Board of Governors Meeting (RDG) today, Tuesday, November 18, 2025. The results of the meeting will be announced tomorrow, Wednesday, November 19.

Citibank, NA, Indonesia (Citi Indonesia) also predicts that BI will still maintain BI-rate at the level of 4.75 percent.

Head of Citi Indonesia Economist Helmi Arman estimates that BI will only lower interest rates in December 2025. According to him, BI-rate will be at the level of 4.5 percent by the end of the year.

"Our estimate is that we will maintain it and we will see it only decline in December," Helmi said when met after a press conference on Citi Indonesia's Economics and Financial Performance Quarter III-2025 in Jakarta, Tuesday, November 18.

Helmi also mentioned that there were several underlying reasons. First, he saw that the difference in bond interest between Indonesia and the United States (US) is currently also starting to tighten. Second, there is still a flow from the bond market and SRBI.

"We have seen recently that many bond investors tend to reposition their portfolio out of Asia and towards Latin American countries," he said.

According to Helmi, the BI-rate decline will not stop this year. Given, he said, BI has the potential to continue its BI-rate decline at the beginning of next year.

For the time to be precise, Helmi saw that the decline would at least be seen again until the first quarter of 2026. Citi Indonesia projects that BI-rate will be at the level of 4.25 percent.

"This is based on estimates that core inflation will be relatively stable and not far from expected, BI's inflation target is around 2.5 percent," he added.