The Bank Indonesia Board of Governors Meeting (RDG BI) cut interest rates to 5.25% with a Deposit Facility Rate of 4.50% and Lending Facility Rate of 6.00% on July 16, 2025. This decision aligns with the expected inflation rate to fall below the target of 2.5±1% in 2026 and 2027. Additionally, BI assesses that the current Rupiah exchange rate is relatively stable compared to the currencies of Indonesia’s developing trade partners and advanced economies, excluding the US, thus supporting Indonesia’s export competitiveness. The stable exchange rate is supported by continued foreign capital inflows, particularly into government securities (SBN), and foreign currency conversion to Rupiah following the Natural Resources Export Proceeds (DHE-SDA) policy.