Indonesia Central Bank Holds Current Interest Rate Lowest Since 2022

REPUBLIKA.CO.ID, JAKARTA — Bank Indonesia (BI) Governor Perry Warjiyo said Bank Indonesia's benchmark interest rate (Bi-rate), which currently stands at 4.75 percent, is the lowest since 2022. Since last year, BI has cut its benchmark interest rate six times since September 2024, which at that time stood at 6 percent.

“The Bi-rate has fallen by 150 basis points (bps) since September 2024 to 4.75 percent, which is the lowest level since 2022,” Perry Warjiyo said in a press conference on the results of the October 2025 Board of Governors Meeting held online, in Jakarta, Wednesday (22/10/2025).

He explained that the decrease in the Bi-rate is part of the policy mix implemented to promote economic growth while maintaining the stability of the national economy.

Another policy implemented is to strengthen the stabilization of the rupiah exchange rate by intervening in the offshore Non-Deliverable Forward (NDF) market as well as intervention in the domestic market through the spot market, Domestic NDF (DNDF), as well as the purchase of State Securities (SBN) in the secondary market. In parallel, BI sets competitive interest rates for foreign exchange monetary instruments to maintain the attractiveness of fund placement in Indonesia, while supporting the stability of the rupiah exchange rate.

Perry said that it also expanded the rupiah's liquidity through the reduction of Bank Indonesia's Rupiah Sekuritas (SRBI) monetary instrument position from Rp 916.97 trillion at the beginning of 2025 to Rp 707.05 trillion on October 21, 2025.

In addition, Bank Indonesia purchased SBN as a form of synergy between monetary policy and fiscal policy. Until October 21, 2025, SBN purchases reached Rp 268.36 trillion, including purchases in the secondary market and debt switching programs with the government amounting to Rp199.45 trillion.

Purchases of SBNs in the secondary market are carried out according to market mechanisms in a measurable, transparent, and consistent manner with monetary policy in maintaining economic stability, so as to continue to maintain the credibility of monetary policy.

“Monetary policy is also supported by macroprudential liquidity incentive (KLM) policies and accelerated digitalization of payment systems to drive economic growth,” Perry said.

The Board of Governors (RDG) of Bank Indonesia in October 2025 that took place on Tuesday (21/10) and Wednesday (22/10) decided to keep the benchmark interest rate or Bi-rate at 4.75 percent.

sumber : Antara