
Bank Indonesia Holds Rate Steady at 5.75%, focuses on Rupiah Stability
Bank Indonesia’s Board of Governors Meeting (BGM) held the BI rate at 5.75% on March 23, 2025. The Deposit Facility (DF) rate remains at 5.00%, and the Lending Facility (LF) rate stands at 6.50%. This decision ensures inflation remains controlled within the target range of 2.5±1% for 2025 and 2026.Bank Indonesia also focuses on maintaining a stable and market-friendly Rupiah exchange rate. It involves open market operations in the spot market, the domestic non-deliverable forward (DNDF) market, and Government Securities (SBN) purchases in the secondary market to safeguard financial market stability and ensure adequate banking liquidity. Furthermore, the decision seeks to enhance the effectiveness of pro-market policies in money and foreign exchange market transactions. It also encourages foreign capital inflows by maintaining an attractive interest rate structure and FX swap framework for investment in domestic financial assets. Additionally, Bank Indonesia is strengthening its Macroprudential Liquidity Policy (KLM) to boost credit and financing growth, particularly for Micro, Small, and Medium Enterprises (MSMEs) and labor-intensive sectors. This initiative aims to create jobs and support sustainable economic growth.