Bank Indonesia reduced its 7-day reverse repo rate by 25bps to 5.25 percent during its September meeting, in an attempt to boost economic growth amid low inflation expectations. It was the third straight cut in three months, amid growing concerns about global growth due to continued trade tensions and a number of geopolitical risks. The overnight deposit and lending facilities were also trimmed by the same amount to 4.50 percent and 6.00 percent, respectively. Interest Rate in Indonesia averaged 7.02 percent from 2005 until 2019, 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.

Interest Rate in Indonesia is expected to be 5.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Indonesia to stand at 5.00 in 12 months time. In the long-term, the Indonesia Interest Rate is projected to trend around 5.00 percent in 2020, according to our econometric models.

Indonesia Interest Rate
width
height
Forecast Data Chart
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.


Calendar GMT Actual Previous Consensus TEForecast
2019-06-20 07:30 AM Interest Rate Decision 6% 6% 6% 6%
2019-07-18 07:20 AM Interest Rate Decision 5.75% 6% 5.75% 5.75%
2019-08-22 07:20 AM Interest Rate Decision 5.50% 5.75% 5.75% 5.75%
2019-09-19 07:20 AM Interest Rate Decision 5.25% 5.5% 5.25% 5.25%
2019-10-24 07:30 AM Interest Rate Decision 5.25% 5.25%
2019-11-21 07:30 AM Interest Rate Decision 5.25%
2019-12-19 07:30 AM Interest Rate Decision 5%



Bank Indonesia Slashes Interest Rates for 3rd Month

Bank Indonesia reduced its 7-day reverse repo rate by 25bps to 5.25 percent during its September meeting, in an attempt to boost economic growth amid low inflation expectations. It was the third straight cut in three months, amid growing concerns about global growth due to continued trade tensions and a number of geopolitical risks. The overnight deposit and lending facilities were also trimmed by the same amount to 4.50 percent and 6.00 percent, respectively.

Excerpts from the Bank Indonesia press release:

Ongoing trade tensions between the United States and China, accompanied by geopolitical risks, continue to suppress the global economy and amplify global financial market uncertainty. The tit-for-tat imposition of higher import tariffs by the United States and China is stifling world trade volume and global economic growth. The US economy is moderating on declining exports and non-residential investment. In addition, economic growth in Europe, Japan, China and India continues to decelerate on weaker exports, which has fed through to lower domestic demand. The global economic slowdown has triggered lower international commodity prices, including oil, leading to mild inflationary pressures. In response, many countries have introduced fiscal stimuli and relaxed monetary policy. Meanwhile, high global financial market uncertainty has triggered a shift in global funds to safe haven assets, such as government bonds in the United States and Japan as well as gold, although capital inflows to developing economies have been maintained. Prevailing global economic dynamics demand vigilance due to the potential impact on efforts to stimulate economic growth and maintain foreign capital inflows to bolster external stability.

Indonesia's economy remains overshadowed by intense global headwinds. Exports have failed to regain momentum in line with weaker global demand and sliding commodity prices despite several manufacturing exports, such as motor vehicles, maintaining positive growth. Consequently, investment growth remains underwhelming, non-building investment in particular, while national strategic project development continues to prop up building investment. Private consumption has posted limited gains, although social aid program (bansos) disbursements by the government have helped to maintain stable household consumption growth. Moving forward, the policy mix implemented by Bank Indonesia and the Government is projected to maintain national economic growth momentum towards the lower half of the 5.0-5.4% range in 2019 before increasing towards the midpoint of the 5.1-5.5% targeted for 2020.

Low and stable inflation remains under control. CPI inflation in August 2019 was recorded at 0.12% (mtm), decreasing from 0.31% (mtm) the month earlier. Annually, headline inflation in August 2019 stood at 3.49% (yoy), up slightly from 3.32% (yoy) in the previous period. Inflation was supported by controlled core inflation in line with anchored inflation expectations due to policy consistency by Bank Indonesia to maintain price stability, manage aggregate demand and minimise the impact of global prices. Core inflation has been edged up over the past few months by rising international gold prices as well as the second-round effect of higher volatile food (VF) inflation. The latest developments, however, point to lower VF inflation in line with maintained foodstuff supply. Meanwhile, administered prices recorded deflation in the reporting period due to lower transport fares, airfares in particular due to implementation of the airlines’ low season strategy. Moving ahead, Bank Indonesia will consistently maintain price stability and strengthen policy coordination with the central and regional governments to control inflation. Therefore, Bank Indonesia projects inflation in 2019 below the midpoint of the 3.5%±1% target corridor and within the target range for 2020, namely 3.0%±1%.


Bank Indonesia | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/19/2019 12:13:03 PM



Indonesia Money Last Previous Highest Lowest Unit
Interest Rate 5.25 5.50 12.75 4.25 percent [+]
Interbank Rate 5.80 5.80 57.79 4.19 percent [+]
Money Supply M0 622452.15 619652.40 675767.84 2983.00 IDR Billion [+]
Money Supply M1 1475199.00 1486384.40 1523525.70 317.90 IDR Billion [+]
Money Supply M2 5934216.20 5937500.00 5937500.00 5156.00 IDR Billion [+]
Foreign Exchange Reserves 124300.00 126441.00 131979.64 27404.30 USD Million [+]
Loans to Private Sector 4775245.00 4765759.00 4775245.00 286724.00 IDR Billion [+]
Deposit Interest Rate 4.50 4.75 56.00 3.00 percent [+]
Lending Rate 6.00 6.25 15.75 5.00 percent [+]
Loan Growth 9.58 9.92 90.50 -59.90 percent [+]
Cash Reserve Ratio 6.00 6.00 8.00 5.00 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 2019.

Actual Previous Highest Lowest Dates Unit Frequency
5.25 5.50 12.75 4.25 2005 - 2019 percent Daily




Country Last Previous
Argentina 68.02 Oct/19
Turkey 16.50 Sep/19
Mexico 7.75 Sep/19
Russia 7.00 Sep/19
South Africa 6.50 Sep/19
Brazil 5.50 Sep/19
Indonesia 5.25 Sep/19
India 5.15 Oct/19
China 4.20 Oct/19
Saudi Arabia 2.50 Sep/19
United States 2.00 Sep/19
Canada 1.75 Sep/19
Singapore 1.72 Sep/19
South Korea 1.50 Sep/19
Australia 0.75 Oct/19
United Kingdom 0.75 Sep/19
Euro Area 0.00 Sep/19
France 0.00 Sep/19
Germany 0.00 Sep/19
Italy 0.00 Sep/19
Netherlands 0.00 Sep/19
Spain 0.00 Sep/19
Japan -0.10 Sep/19
Switzerland -0.75 Sep/19


Related

Latest