BI Holds Benchmark Rate at 4.75 Percent to Stabilize Rupiah

RRI.CO.ID, Jakarta: Bank Indonesia’s Board of Governors decided at its January 2026 meeting to maintain the benchmark BI Rate at 4.75 percent. The Deposit Facility rate was kept at 3.75 percent, while the Lending Facility rate remained at 5.5 percent.

“This decision is consistent with BI’s current policy focus to stabilize the rupiah exchange rate amid rising global uncertainty,” Governor Perry Warjiyo said in a press statement following the meeting in Jakarta on Wednesday, January 21, 2025.

He explained that stabilizing the rupiah is intended to support the achievement of inflation targets for 2026–2027 and to encourage stronger economic growth. “BI continues to monitor the scope for further reductions in the BI Rate, taking into account the inflation forecast for 2026–2027, which is expected to remain within the target range of 2.5±1 percent, while also promoting higher growth,” Perry said.

To achieve this, BI will continue to strengthen the effectiveness of monetary and macroprudential policy easing. The central bank will also implement macroprudential measures to support economic expansion.

“The effectiveness of the Macroprudential Liquidity Incentive (KLM) policy will be improved, so that interest rates can be lowered more quickly and credit or financing growth in the real sector can increase,” Perry said.

He added that the KLM policy will be directed toward government priority sectors. “The combination of monetary, macroprudential, and payment system policies will safeguard stability and ensure sustainable economic growth,” Perry concluded. (Gusti Panji/Lasti Martina)