Jakarta. Bank Indonesia (BI) kept the benchmark BI Rate unchanged at 4.75 percent during its November 18–19 policy meeting, maintaining the Deposit Facility at 3.75 percent and the Lending Facility at 5.5 percent.

BI Governor Perry Warjiyo said the decision aligns with the central bank’s short-term priority to stabilize the rupiah and sustain foreign portfolio inflows amid elevated global uncertainty, while ensuring the transmission of earlier monetary and macroprudential easing remains effective.

BI also reiterated that its payment system policy will continue to support economic growth through wider digital payment adoption, stronger industry structure, and improved infrastructure resilience.

“The direction of our monetary, macroprudential, and payment system policy mix remains focused on maintaining stability and supporting sustainable economic growth,” Perry said.

BI has cut interest rates once in 2024 and five times in 2025, bringing the total reduction from the peak of 6.25 percent to 150 basis points. The central bank also held rates steady in October.

Economists widely expected BI to pause after this year’s aggressive easing cycle. Bank Permata Chief Economist Josua Pardede said the central bank must tread carefully as pro-growth policies risk widening the current account and fiscal deficits. He added that the US Federal Reserve is unlikely to embark on an aggressive easing path, with trade-related inflation pressures still unfolding.

Given these dynamics, Josua sees limited room for BI to lower rates further, noting the importance of maintaining a positive interest rate differential to prevent capital outflows. “Especially after BI’s aggressive easing this year compared with the Fed,” he said on Tuesday.

Universitas Indonesia's Economics and Social Research Institute (LPEM) economist Teuku Riefky also flagged rising inflation risks alongside seasonal demand, portfolio outflows, and rupiah weakness. These trends, he said, reinforce the need to safeguard external stability, while growing concerns over fiscal and quasi-fiscal risks shape investor sentiment.

“In this environment, keeping the policy rate at 4.75 percent provides an important anchor. Holding rates helps contain pressure on the currency and strengthens confidence in BI’s policy independence,” Riefky said in a report received on Tuesday.