
BI Holds Rates at 5.5%: Focus on Rupiah Stability & Growth Amid Global Headwinds
Bank Indonesia Board of Governors Meeting (RDG BI) maintained the interest rate at 5.5%, with a Deposit Facility Rate of 4.75% and a Lending Facility Rate of 6.25% on June 18, 2025. This decision aligns with the controlled inflation target range of 2.5±1% for 2025 and 2026. Additionally, BI focuses on maintaining Rupiah exchange rate stability in line with fundamental values while promoting sustainable economic growth amid global and domestic economic dynamics. Furthermore, BI optimizes Macroprudential Liquidity Policy (KLM) to enhance credit growth financing in the MSME sector and promote flexibility in banking liquidity management. BI’s strategy to drive economic growth includes strengthening the rupiah exchange rate strategy through open market operations in Domestic Non-Deliverable Forward (DNDF) in foreign markets, spot purchases in domestic markets, and Government Securities (SBN) purchases in the secondary market to maintain financial market stability and adequate banking liquidity, strengthening pro-market monetary operations to support interest rate reduction and accelerate money market and foreign exchange transactions, as well as encouraging foreign capital inflows by maintaining attractive yields on foreign portfolio investments in domestic financial assets and strengthening SRBI auction strategies and large-scale SBN purchases to support money market liquidity.