Indonesia Interest Rate  2005-2017 | Data | Chart | Calendar | Forecast

The central bank of Indonesia held its benchmark policy rate at 4.25 percent on October 19th, as widely expected, following surprise cuts at the previous two meetings. Policymakers said that the current monetary policy stance is appropriate to maintain inflation rate and rupiah stability. The bank also held the deposit facility and lending facility rates unchanged at 3.5 percent and 5.0 percent, respectively. Interest Rate in Indonesia averaged 7.31 percent from 2005 until 2017, reaching an all time high of 12.75 percent in December of 2005 and a record low of 4.25 percent in September of 2017.

Indonesia Interest Rate
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Indonesia Cuts Key Rate to 4.25%

The central bank of Indonesia unexpectedly cut its key repo rate by 25bps to 4.25 percent on September 22nd 2017, following a similar 25bps cut in the previous meeting. The move aimed to strengthen banking intermediary function and support economic growth. Policymakers said current policy stance is sufficient to achieve inflation and macroeconomic targets, suggesting further loosening is unlikely in the near future. The lending and the deposit facility rates were also lowered by 25bps each to 5 percent and 3.5 percent respectively.

Excerpts from the Bank Indonesia Press Release:

The BI Board of Governors agreed on 20th and 22nd September 2017 to lower the BI 7-day Reverse Repo Rate 25 basis points (bps) from 4.50% to 4.25%, while also lowering the Deposit and Lending Facility rates 25 bps to 3.50% and 5.00% respectively, effective 25th September 2017. The decision was consistent with low inflation, estimated to continue till the end of 2017, and 2018 and 2019 inflation projected to stay below the mid range of the target, as well as current account deficit under control within a heatlhy range. External risks, specifically related to FFR hike and US balance sheet normalization plans, have also been accounted for. The rate cut is expected to support the ongoing improvements in banking intermediation and domestic economic recovery. Bank Indonesia views that the current level of policy rate is sufficient in accordance with the forecast of inflation and other macroeconomics. Furthermore, Bank Indonesia will continue to coordinate with the Government to reinforce policy mix in order to maintain macroeconomic stability and strengthen economic recovery momentum.

Moving forward, economic growth is expected to improve along with more expansive government spending and Bank Indonesia’s monetary policy easing. Consequently, Bank Indonesia maintains its prediction for 2017 national economic growth in the 5.0-5.4% range, accelerating in 2018 to 5.1-5.5%.

Moving forward, low inflation is expected to persist within the target range, supported by anchored expectations, relatively stable exchange rates and the downward global inflation trend. Nevertheless, Bank Indonesia will continue to strengthen policy coordination with the central government and regional administrations to control inflation, to support achievements of the inflation targets at 4.0±1% in 2017 and at 3.5±1% in 2008 and 2019.

Moving forward, bank intermediation is expected to improve in line with BI’s decision to perform rate cut and macroprudential policy easing, while banking and corporation consolidation continues.. In addition, economic financing through capital markets is also expected to improve, in line with financial markets deepening efforts.

Bank Indonesia | Joana Taborda |
9/22/2017 4:31:56 PM

Calendar GMT Actual Previous Consensus TEForecast
2017-08-22 11:35 AM Interest Rate Decision 4.5% 4.75% 4.75% 4.75%
2017-09-22 01:40 PM Interest Rate Decision 4.25% 4.5% 4.5%
2017-10-19 10:30 AM Interest Rate Decision 4.25% 4.25% 4.25% 4.25%
2017-11-16 09:00 AM Interest Rate Decision 4.25% 4.25%
2017-12-14 09:00 AM Interest Rate Decision 4.25%

Indonesia Money Last Previous Highest Lowest Unit
Interest Rate 4.25 4.25 12.75 4.25 percent [+]
Interbank Rate 5.19 5.19 57.79 4.19 percent [+]
Money Supply M0 526959.98 516929.35 561856.55 2983.00 IDR Billion [+]
Money Supply M1 1274700.00 1283751.20 1395312.30 317.90 IDR Billion [+]
Money Supply M2 5218500.00 5166441.90 5278918.40 5156.00 IDR Billion [+]
Foreign Exchange Reserves 129402.00 128787.06 129402.00 27404.30 USD Million [+]
Loans to Private Sector 4009871.00 3993982.00 4018942.00 286724.00 IDR Billion [+]
Deposit Interest Rate 3.50 3.50 56.00 3.00 percent [+]
Cash Reserve Ratio 6.50 6.50 8.00 5.00 percent [+]
Lending Rate 5.00 5.00 15.75 5.00 percent [+]
Loan Growth 8.26 8.20 90.50 -59.90 percent [+]

Indonesia Interest Rate

In Indonesia the interest rate decisions are taken by The Central Bank of Republic of Indonesia. In April of 2016, policymakers announced the replacement of the official discount interest rate with new 7-day reverse repurchase rate in August 2016. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis. This page provides - Indonesia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Indonesia Interest Rate - actual data, historical chart and calendar of releases - was last updated on October of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
4.25 4.25 12.75 4.25 2005 - 2017 percent Daily

interest rate by Country

Russia 8.50 Sep/17
Brazil 8.25 Sep/17
Turkey 8.00 Sep/17
Mexico 7.00 Sep/17
India 6.00 Oct/17
China 4.35 Sep/17
Indonesia 4.25 Oct/17
Australia 1.50 Oct/17
South Korea 1.25 Oct/17
United States 1.25 Sep/17
Canada 1.00 Sep/17
United Kingdom 0.25 Sep/17
Euro Area 0.00 Sep/17
France 0.00 Sep/17
Germany 0.00 Sep/17
Italy 0.00 Sep/17
Netherlands 0.00 Sep/17
Spain 0.00 Sep/17
Japan -0.10 Sep/17
Switzerland -0.75 Sep/17