Indonesia Holds Rates as Rupiah Remains Weak

2026-01-21 07:39 By Chusnul Chotimah 1 min. read

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.



News Stream
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.
2026-01-21
Indonesia Holds Rates Steady for 3rd Month
Bank Indonesia (BI) maintained its benchmark interest rate at 4.75% for the third consecutive meeting at its December 2025 policy meeting, in line with expectations and aimed at supporting the rupiah, despite signs of slowing economic growth. The decision came after 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 reflects the central bank’s view that inflation in 2025–2026 will remain within the target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. The latest data showed that GDP grew 5.04% yoy in Q3, easing from the two-year high reached in Q2, while annual inflation eased to 2.72% in November from October’s 18-month high of 2.86%. BI held its GDP growth forecasts at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. It also kept the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively.
2025-12-17
Indonesia Keeps Rates Steady for 2nd Month
Bank Indonesia (BI) held its benchmark interest rate unchanged at 4.75% during its November 2025 policy meeting, in line with expectations and aimed at supporting the rupiah. The rate remains at its lowest level since October 2022, following cumulative cuts of 150 bps since September last year. The decision reflects the central bank’s view that inflation in 2025–2026 will remain within the target range of 2.5% ± 1%, supported by a stable rupiah and ongoing measures to sustain economic growth. Recent data showed that the rupiah weakened by 0.69% point-to-point as of November 18 compared with October 2025. Meanwhile, GDP grew 5.04% yoy in Q3, easing from the two-year high reached in Q2, while annual inflation accelerated to 2.86% in October, the highest since April 2024, though still within BI’s target range. BI now expects GDP growth to be in the 4.7%–5.5% range. BI also kept the overnight deposit facility rate and the lending facility rate unchanged at 3.75% and 5.50%, respectively.
2025-11-19