Jakarta. Bank Indonesia (BI) has decided to maintain its benchmark interest rate at 5.75 percent, along with the Deposit Facility rate at 5 percent and the Lending Facility rate at 6.5 percent, following the central bank’s Board of Governors Meeting held on Tuesday to Wednesday.

Governor Perry Warjiyo said the decision was in line with the central bank's efforts to keep inflation within the target range of 2.5±1 percent through 2025–2026, preserve rupiah stability amid mounting global uncertainty, and support sustainable economic growth.

“Looking ahead, BI continues to monitor room for further rate cuts by considering rupiah stability, inflation prospects, and the need to boost economic growth,” Perry said during a virtual press conference on Wednesday.

Perry added that BI would continue to optimize macroprudential and payment system policies to support economic momentum. The Macroprudential Liquidity Incentive Policy, which was strengthened on April 1, aims to encourage bank credit in priority sectors aligned with the government’s development programs.

To support small businesses and trade, BI is also expanding its digital payment infrastructure and improving the structure of Indonesia’s payment system industry.

“BI’s monetary, macroprudential, and payment system policy mix will remain geared toward stability and stronger, sustainable growth,” he said.

At the same time, BI revised down its 2025 global growth forecast from 3.2 percent to 2.9 percent, due to heightened uncertainty driven by the United States' reciprocal tariff policy announced earlier in April. The move triggered retaliatory measures from China and could prompt similar action from other nations, worsening global trade fragmentation.

Read More: DBS: US Tariff Could Cut Indonesia’s Growth by 0.5 Pct

Perry warned that the US-China tariff war is set to drag down global growth, with the sharpest declines expected in both countries. Growth in other advanced and emerging economies is also likely to slow, due to declining exports and reduced trade volumes.

Indonesia’s 2025 GDP growth is now projected to fall slightly below the midpoint of BI’s 4.7–5.5 percent target, due to both direct and indirect impacts of declining export demand, particularly from the US and China.

Meanwhile, the International Monetary Fund (IMF) on Tuesday slashed the global economic outlook to just 2.8 percent this year, down from its forecast in January of 3.3 percent. Global growth in 2026 was revised to 3 percent, below its previous 3.3 percent estimate.

To cushion these risks, Perry said BI would strengthen its policy mix, coordinate closely with government fiscal measures, and accelerate the digitalization of Indonesia’s financial ecosystem.

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