BI Holds Rate at 5.75 Percent to Support Real Sector Growth

RRI.CO.ID, Jakarta – Economist Eko Listyanto of the Institute for Development of Economics and Finance (Indef) said Bank Indonesia's (BI) decision to maintain the benchmark BI Rate would help ensure that real-sector activities, particularly housing and micro, small and medium enterprises (MSMEs), continue to grow.

"Yes, this is also part of efforts to ensure that the real sector continues to operate," Eko told Antara in Jakarta on Monday, Sept. 28, 2026.

He said exchange-rate volatility had emerged as a result of the United States Federal Reserve's decision to raise its benchmark interest rate. However, he noted the impact was unavoidable and felt globally, particularly in developing countries.

Eko said BI's decision to keep the policy rate unchanged was intended, among other things, to prevent lending rates from rising abruptly at domestic banks.

"From my reading of BI's policy, maintaining the BI Rate is part of an effort to ensure that credit growth and lending rates do not suddenly increase. This provides optimism and clearer direction for keeping interest rates more affordable, particularly for the housing sector and MSMEs," he said.

Previously, BI Governor Destry Damayanti said the BI Rate, which remains at 5.75 percent, was still sufficient to support and maintain stability amid a higher-for-longer global interest-rate environment.

Destry said the domestic economy continued to improve, prompting the central bank to support growth through macroprudential measures, payment system policies and other supporting initiatives, including financial market deepening, MSME development and regional policies.

Meanwhile, BI Senior Deputy Governor Aida S. Budiman said the central bank chose not to raise the BI Rate because doing so could increase domestic prices.

She added that despite rising global oil prices, Indonesia's economic fundamentals remained solid, supported by domestic demand, consumption and investment.

BI projects Indonesia's economic growth in 2026 to range between 4.9 percent and 5.7 percent. ***