News

Bank Indonesia Delivers First Rate Hike Since 2024
Bank Indonesia raised its benchmark interest rate by 50 bps to 5.25% at its May 2026 policy meeting, delivering a larger-than-expected increase as markets had anticipated a 25 bps hike to 5%. The move marked the central bank’s first rate hike since April 2024, aiming to strengthen the rupiah, curb imported inflation risks, and keep inflation within the government’s 2.5% ±1% target range. The rupiah weakened 2.2% from end-April to Rp17,700 per US dollar on May 19. Meanwhile, annual inflation eased to 2.42% in April 2026 from 3.48% in March, the lowest since August 2025 and still within the central bank’s target range. The decision aligns with the “pro-stability” focus of monetary policy aimed at strengthening Indonesia’s external resilience amid global uncertainty. Meanwhile, macroprudential and payment system policies remain geared toward supporting growth (“pro-growth”). The central bank also raised its overnight deposit facility rate to 4.75% and its lending facility rate to 6.0%.
Published on 2026-05-20

Bank Indonesia Delivers First Rate Hike Since 2024
Bank Indonesia raised its benchmark interest rate by 50 bps to 5.25% at its May 2026 policy meeting, delivering a larger-than-expected increase as markets had anticipated a 25 bps hike to 5%. The move marked BI’s first rate hike since April 2024, aiming to strengthen the rupiah, curb imported inflation risks, and keep inflation within the government’s 2.5% ±1% target range. The rupiah weakened 2.2% from end-April to Rp17,700 per US dollar on May 19. Meanwhile, annual inflation eased to 2.42% in April 2026 from 3.48% in March, the lowest since August 2025 and still within the central bank’s target range. The decision aligns with the “pro-stability” focus of monetary policy aimed at strengthening Indonesia’s external resilience amid global uncertainty. Meanwhile, macroprudential and payment system policies remain geared toward supporting growth (“pro-growth”). The central bank also raised its overnight deposit facility rate to 4.75% and its lending facility rate to 6.0%.
Published on 2026-05-20

Bank Indonesia Delivers First Rate Hike Since 2024
Bank Indonesia raised its benchmark interest rate by 50 bps to 5.25% at its May 2026 policy meeting, delivering a larger-than-expected increase as markets had anticipated a 25 bps hike to 5%. The move marked BI’s first rate hike since April 2024, aiming to strengthen the rupiah, curb imported inflation risks, and keep inflation within the government’s 2.5% ±1% target range. The rupiah weakened 2.2% from end-April to Rp17,700 per US dollar on May 19. Meanwhile, annual inflation eased to 2.42% in April 2026 from 3.48% in March, the lowest since August 2025 and still within the central bank’s target range. The decision aligns with the “pro-stability” focus of monetary policy aimed at strengthening Indonesia’s external resilience amid global uncertainty. Meanwhile, macroprudential and payment system policies remain geared toward supporting growth (“pro-growth”). The central bank also raised its overnight deposit facility rate to 4.75% and its lending facility rate to 6.0%.
Published on 2026-05-20

Indonesia Holds Rates Steady to Support Rupiah
Bank Indonesia (BI) kept its benchmark interest rate unchanged for the seventh straight month at 4.75% at its April 2026 policy meeting, in line with market expectations and aimed at supporting the rupiah and economic growth. The rupiah weakened to Rp17,140 per US dollar on April 21, 2026, a 0.87% decline from end-March levels, as escalating Middle East tensions triggered capital outflows from emerging markets. Meanwhile, BI expects inflation to remain within its 2026–2027 target range of 2.5% ±1%. The annual inflation rate slowed to a three-month low of 3.48% in March 2026 from 4.76% in February, within the central bank’s 1.5%–3.5% target range. Despite global headwinds, the central bank maintained its economic growth forecast of 4.9%–5.7% for 2026. Indonesia’s GDP expanded 5.39% yoy in Q4 2025, accelerating from 5.04% in Q3 and marking the strongest growth since Q3 2022. The central bank also left its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.
Published on 2026-04-22

Indonesia Holds Rates Steady to Support Rupiah
Bank Indonesia kept its benchmark interest rate unchanged for the seventh straight month at 4.75% at its April 2026 policy meeting, in line with market expectations and aimed at supporting the rupiah and economic growth. The rupiah weakened to Rp17,140 per US dollar on April 16, 2026, a 0.87% decline from end-March levels, as escalating Middle East tensions triggered capital outflows from emerging markets. Meanwhile, Bank Indonesia expects inflation to remain within its 2026–2027 target range of 2.5% ±1%. The annual inflation rate slowed to a three-month low of 3.48% in March 2026 from 4.76% in February, within the central bank’s 1.5%–3.5% target range. Despite global headwinds, the central bank maintained its economic growth forecast of 4.9%–5.7% for 2026. Indonesia’s GDP expanded 5.39% yoy in Q4 2025, accelerating from 5.04% in Q3 and marking the strongest growth since Q3 2022.
Published on 2026-04-22

Indonesia Holds Rates Steady to Support Rupiah
Bank Indonesia (BI) kept its benchmark interest rate unchanged for the seventh straight month at 4.75% at its April 2026 policy meeting, in line with market expectations and aimed at supporting the rupiah and economic growth. The rupiah weakened to Rp17,140 per US dollar on April 16, 2026, a 0.87% decline from end-March levels, as escalating Middle East tensions triggered capital outflows from emerging markets. Meanwhile, BI expects inflation to remain within its 2026–2027 target range of 2.5% ±1%. The annual inflation rate slowed to a three-month low of 3.48% in March 2026 from 4.76% in February, within the central bank’s 1.5%–3.5% target range. Despite global headwinds, the central bank maintained its economic growth forecast of 4.9%–5.7% for 2026. Indonesia’s GDP expanded 5.39% yoy in Q4 2025, accelerating from 5.04% in Q3 and marking the strongest growth since Q3 2022. The central bank also left its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.
Published on 2026-04-22

Indonesia Holds Rates Steady to Support Rupiah
Bank Indonesia (BI) kept its benchmark interest rate unchanged for the seventh straight month at 4.75% at its April 2026 policy meeting, in line with market expectations and aimed at supporting the rupiah and economic growth. The rupiah weakened to Rp17,140 per US dollar on April 21, 2026, a 0.87% decline from end-March levels, as escalating Middle East tensions triggered capital outflows from emerging markets. Meanwhile, BI expects inflation to remain within its 2026–2027 target range of 2.5% ±1%. The annual inflation rate slowed to a three-month low of 3.48% in March 2026 from 4.76% in February, within the central bank’s 1.5%–3.5% target range. Despite global headwinds, the central bank maintained its economic growth forecast of 4.9%–5.7% for 2026. Indonesia’s GDP expanded 5.39% yoy in Q4 2025, accelerating from 5.04% in Q3 and marking the strongest growth since Q3 2022. The central bank also left its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.
Published on 2026-04-22

Indonesia Holds Rates Steady as Expected
Bank Indonesia held its benchmark interest rate steady at 4.75% during its March 2026 policy meeting, in line with market expectations. The decision aims to bolster the stability of the Rupiah while keeping inflation within the central bank’s 2026–2027 target of 2.5% ±1%. The Rupiah weakened to Rp16,985 per US dollar on March 16, 2026, a 1.29% decline from end-February levels, as escalating Middle East tensions triggered capital outflows from emerging markets. Meanwhile, the annual inflation rate rose to 4.76% in February 2026 from 3.55% in January, marking its highest level since March 2023. Despite global headwinds, the central bank maintained its economic growth forecast of 4.9%–5.7% for 2026. Indonesia’s GDP grew 5.39% year-on-year in Q4 2025, accelerating from 5.04% in the previous quarter and marking the strongest economic expansion since Q3 2022. The central bank also kept its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.
Published on 2026-03-17

Indonesia Holds Rates Steady as Expected
Bank Indonesia held its benchmark interest rate steady at 4.75% during its March 2026 policy meeting, in line with market expectations. The decision aims to bolster the stability of the Rupiah while keeping inflation within the central bank’s 2026–2027 target of 2.5% ±1%. The Rupiah weakened to Rp16,985 per US dollar on March 16, 2026, a 1.29% decline from end-February levels, as escalating Middle East tensions triggered capital outflows from emerging markets. Meanwhile, the annual inflation rate rose to 4.76% in February 2026 from 3.55% in January, marking its highest level since March 2023. Despite global headwinds, the central bank maintained its economic growth forecast of 4.9%–5.7% for 2026. Indonesia’s GDP grew 5.39% year-on-year in Q4 2025, accelerating from 5.04% in the previous quarter and marking the strongest economic expansion since Q3 2022. The central bank also kept its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.
Published on 2026-03-17

Indonesia Holds Rates Steady as Expected
Bank Indonesia held its benchmark interest rate steady at 4.75% during its March 2026 policy meeting, in line with market expectations. The decision aims to bolster the stability of the Rupiah while keeping inflation within the central bank’s 2026–2027 target of 2.5% ±1%. The Rupiah weakened to Rp16,985 per US dollar on March 16, 2026, a 1.29% decline from end-February levels, as escalating Middle East tensions triggered capital outflows from emerging markets. Meanwhile, the annual inflation rate rose to 4.76% in February 2026 from 3.55% in January, marking its highest level since March 2023. Despite global headwinds, the central bank maintained its economic growth forecast of 4.9%–5.7% for 2026. Indonesia’s GDP grew 5.39% year-on-year in Q4 2025, accelerating from 5.04% in the previous quarter and marking the strongest economic expansion since Q3 2022. The central bank also kept its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.
Published on 2026-03-17

Indonesia Leaves Rates Unchanged
Bank Indonesia kept its benchmark interest rate unchanged at 4.75% for the fifth consecutive meeting in February 2026, in line with market expectations. The latest decision seeks to stabilize the rupiah amid persistent global financial volatility, while also ensuring inflation remains within its 2026–2027 target range and supporting economic growth. The rupiah remains near a record low amid investor concerns over potential downgrades by MSCI Inc. and Moody’s Ratings of the country’s equities and sovereign credit rating. Meanwhile, the annual inflation rate climbed to 3.55% in January 2026, its highest level since May 2023. Looking ahead, Bank Indonesia expects annual inflation in 2026 and 2027 to remain within the target range of 2.5% ±1%. In addition, BI maintained its economic growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. The central bank also left its overnight deposit facility rate unchanged at 3.75% and its lending facility rate at 5.50%.
Published on 2026-02-19

Indonesia Leaves Rates Unchanged
Bank Indonesia kept its benchmark interest rate unchanged at 4.75% for the fifth consecutive meeting in February 2026, in line with market expectations. The latest decision seeks to stabilize the rupiah amid persistent global financial volatility, while also ensuring inflation remains within its 2026–2027 target range and supporting economic growth. The rupiah remains near a record low amid investor concerns over potential downgrades by MSCI Inc. and Moody’s Ratings of the country’s equities and sovereign credit rating. Meanwhile, the annual inflation rate climbed to 3.55% in January 2026, its highest level since May 2023. Looking ahead, Bank Indonesia expects annual inflation in 2026 and 2027 to remain within the target range of 2.5% ±1%. In addition, BI maintained its economic growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. The central bank also left its overnight deposit facility rate unchanged at 3.75% and its lending facility rate at 5.50%.
Published on 2026-02-19

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the third consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September last year, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights the central bank’s view that inflation in 2026 will remain within the target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth.
Published on 2026-01-21

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the 4th consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September 2024, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights BI’s view that inflation in 2026 will remain within the target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. BI held its GDP growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. It also maintained the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively. BI still has room to resume interest rate cuts, with inflation expected to stay low this year.
Published on 2026-01-21

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the 5th consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September 2024, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights BI’s view that inflation in 2026 will remain within its target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. BI held its GDP growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. It also maintained the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively. BI still has room to resume interest rate cuts, with inflation expected to stay low this year.
Published on 2026-01-21

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the fourth consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September last year, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights the central bank’s view that inflation in 2026 will remain within the target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth.
Published on 2026-01-21

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the 4th consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September 2024, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights BI’s view that inflation in 2026 will remain within its target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. BI held its GDP growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. It also maintained the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively. BI still has room to resume interest rate cuts, with inflation expected to stay low this year.
Published on 2026-01-21

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the 4th consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September last year, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights the central bank’s view that inflation in 2026 will remain within the target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. BI held its GDP growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. It also maintained the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively. Latest data showed that GDP grew 5.04% yoy in Q3, easing from 5.12% in Q2.
Published on 2026-01-21

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the 4th consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September 2024, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights BI’s view that inflation in 2026 will remain within its target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. BI held its GDP growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. It also maintained the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively. BI still has room to resume interest rate cuts, with inflation expected to stay low this year.
Published on 2026-01-21

Indonesia Holds Rates as Rupiah Remains Weak
Bank Indonesia (BI) kept its benchmark interest rate at 4.75% for the fourth consecutive meeting at its January 2026 policy meeting, in line with expectations, as it sought to limit further weakness in the rupiah despite signs of slowing economic growth. The rupiah weakened by 1.53% as of January 20, 2026, compared with the end of December 2025. The central bank has delivered cumulative cuts of 150 bps since September last year, bringing the rate to its lowest level since October 2022 to support economic growth. The decision highlights the central bank’s view that inflation in 2026 will remain within the target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. BI held its GDP growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. It also maintained the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively.
Published on 2026-01-21