Bank Indonesia’s Board of Governors Meeting (BGM) has lowered interest rates by 25 bps to 5.5%, with a Deposit Facility Rate of 4.75% and a Lending Facility Rate of 6.25% on May 21, 2025. This decision aligns with controlled inflation targeting 2.5±1% for 2025 and 2026. Additionally, BI focuses on maintaining Rupiah exchange rate stability that is aligned with fundamental values and promoting sustainable economic growth amid global and domestic economic dynamics. Furthermore, BI strengthens the Macroprudential Liquidity Policy (KLM) to enhance credit growth financing in the MSME sector and promote flexibility in banking liquidity management. BI strategy to drive economic growth includes strengthening the rupiah exchange rate strategy through open market operations in Spot markets, Domestic Non-Deliverable Forward (DNDF) in domestic markets, and purchasing Government Bond Securities (SBN) in the secondary market to maintain financial market stability and adequate banking liquidity, strengthening pro-market monetary operations to reinforce interest rate reduction factors, accelerating money market and foreign exchange transactions, and maintaining attractive yields for foreign portfolio investments in domestic financial assets. BI also reduced the Macroprudential Liquidity Buffer (PLM) ratio by 100 bps to 4% from 5% for conventional commercial banks and the sharia PLM ratio by 100 bps to 2.5% from 3.5% for Islamic banks, effective on June 1st, 2025.