Bank Indonesia Holds Rate at 4.75% to Support Rupiah Stability Amid Global Uncertainty
The Bank Indonesia (BI) Board of Governors Meeting (RDG) decided to hold the interest rate at 4.75%, with the Deposit Facility Rate at 3.75% and the Lending Facility Rate at 5.50% on October 22, 2025. This decision is consistent with the inflation outlook, which is expected to remain low within the target range of 2.5±1% in both 2025 and 2026. In addition, the decision reflects BI’s efforts to maintain rupiah stability amid persistently high global uncertainty. Globally, the world economy is showing signs of a slowdown due to the impact of U.S. tariffs. The United States reimposed additional tariffs on the pharmaceutical, furniture, and automotive sectors starting October 1, 2025, and announced plans to impose an additional 100% tariff on Chinese-origin products.