Bank Indonesia (BI) has once again cut the benchmark interest rate or BI rate by 25 basis points to 4.75 percent. The decision was made at the Board of Governors Meeting held from September 16 to 17, according to reporting from Tempo.
“The Bank Indonesia Board of Governors Meeting decided to decrease the BI Rate by 25 basis points,” said BI Governor Perry Warjiyo in a virtual press conference on Wednesday (17/9/25.)
Tempo reports that this is the fifth cut in 2025. Since January 2025, BI has gradually lowered the BI Rate from 6 percent at the beginning of the year to 5.75 percent in January, 5.5 percent in May, 5.25 percent in July, 5.00 percent in August, and 4.75 percent in September 2025.
In addition, BI has lowered the deposit facility interest rate by 50 bps to 3.75 percent from 4.25 percent and the lending facility by 25 bps to 5.50 percent from 5.75 percent.
Perry hopes that the reduction in the BI Rate can boost economic growth and maintain stability. “In line with the government’s Asta Cita program,” he said.
According to Perry, this step is a joint effort to drive economic growth while maintaining low inflation forecasts of 2.51 percent in 2025 and 2026, and maintaining exchange rate stability in accordance with its fundamentals, says Tempo.
Going forward, Bank Indonesia will continue to monitor economic growth and inflation prospects, utilizing the space to lower the BI Rate while considering exchange rate stability. In line with this, monetary liquidity expansion and loose macroprudential policies will continue to be strengthened to lower interest rates, increase liquidity, and drive credit or financing for achieving higher economic growth.
The payment system’s policies continue to support economic growth by expanding digital payment acceptance, strengthening the industry’s structure, and improving the resilience of its infrastructure.
Source: Tempo
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