Bank Indonesia’s Board of Governors Meeting (RDG) on 20–21 January 2026 decided to keep the BI-Rate at 4.75%, while maintaining the Deposit Facility rate at 3.75% and the Lending Facility rate at 5.50%. The decision reflects the current policy focus on stabilising the rupiah exchange rate amid rising global uncertainty, while supporting the 2026–2027 inflation target and economic growth. Going forward, the focus is on strengthening the effectiveness of monetary easing transmission and existing macroprudential measures, while continuing to assess the scope for further BI-Rate cuts if the 2026–2027 inflation outlook remains within the 2.5% ±1% target range. Macroprudential policy remains pro-growth, including by enhancing the effectiveness of the Macroprudential Liquidity Incentive policy (KLM) to accelerate declines in interest rates and increase credit/financing growth to the real sector, particularly government priority sectors; payment system policy is also oriented to support inclusive economic growth.
Bank Indonesia 2026-01-21
Bank Indonesia keeps BI-Rate at 4.75% and maintains rate corridor to support rupiah stability and the 2026–2027 inflation target
Bank Indonesia's Board of Governors maintained the BI-Rate at 4.75%, the Deposit Facility rate at 3.75%, and the Lending Facility rate at 5.50%, focusing on stabilizing the rupiah amid global uncertainty and supporting the 2026–2027 inflation target. The bank aims to enhance monetary easing transmission and macroprudential measures, considering further BI-Rate cuts if inflation remains within the 2.5% ±1% target, while promoting pro-growth macroprudential and inclusive payment system policies.