Bank Indonesia (BI) decided to hold its benchmark interest rate at 5.50% during its Board of Governors Meeting on June 17–18, 2025.
The central bank cited stable and manageable inflation projections for both 2025 and 2026 within the target range of 1.5%–3.5%.
BI Governor Perry Warjiyo emphasized the importance of maintaining rupiah stability amid ongoing global market volatility:
“This decision aligns with our inflation outlook for 2025–2026, which remains under control, and the need to stabilize the rupiah based on fundamentals — especially in today’s highly uncertain global environment,” he stated.
📉 While BI is currently in wait-and-see mode,
💡 Future rate cuts remain on the table, depending on how inflation, economic growth, and the rupiah evolve.
📊 For context:
BI cut rates from 6.00% to 5.75% in January 2025
Another cut brought it down to 5.50% in May 2025
Since then, BI has maintained this level
🧐 Will Indonesia join other countries in easing rates further this year?
⚠️ Disclaimer: Not Financial Advice (NFA). Always Do Your Own Research (DYOR).