The Bank Indonesia (BI) Board of Governors Meeting (RDG) decided to maintain the benchmark interest rate at 5.75%, with the Deposit Facility Rate at 5.00% and the Lending Facility Rate at 6.50% as of March 19, 2025. This decision is part of an effort to support Indonesia’s economic growth targets and ensure inflation remains within the target range of 2.5±1% for 2025 and 2026. BI also focuses on maintaining a market-friendly Rupiah exchange rate stability through open market operations in the spot market, Domestic Non-Deliverable Forwards (DNDF), and Government Securities (SBN) in the secondary market. The RDG’s decision to keep the benchmark rate steady is influenced by global factors, including the high uncertainty surrounding the Trump administration’s policy direction, such as import tariffs on several U.S. trading partners and tax cuts contributing to a projected slowdown in the U.S. economy. As a result, BI anticipates the Fed Funds Rate (FFR) will decrease only once by 25 basis points in 2025, affecting the Dollar Index (DXY). Furthermore, BI assesses that Indonesia’s financial instruments, such as stocks, the Rupiah exchange rate, and Government Securities (SBN), remain fundamentally attractive. BI projects Indonesia’s economic growth 2025 to be between 4.7% and 5.5%, supported by indicators such as the strong Indonesian Consumer Survey Index.