Bank Indonesia Board of Governors’ Meeting (BGM) on December 17, 2025, decided to maintain its policy rate at 4.75%, with the Deposit Facility Rate at 3.75% and the Lending Facility Rate at 5.50%. This decision is consistent with BI’s short-term policy focus on maintaining rupiah stability against the US dollar and supporting foreign portfolio inflows amid heightened global uncertainty. Such uncertainty is also influenced by indications of more limited room for further rate cuts by the Federal Reserve, alongside persistently high US Treasury yields and a strong US dollar index (DXY), which continue to constrain capital inflows to emerging markets.