Jakarta. Bank Indonesia (BI) kept its benchmark interest rate unchanged at 4.75% after a two-day policy meeting, signaling a continued focus on rupiah stability amid increasing global uncertainty.

The central bank also maintained the Deposit Facility rate at 3.75% and the Lending Facility rate at 5.50%, according to the outcome of the Jan. 20–21 Board of Governors Meeting.

“The decision is consistent with our current policy focus on stabilizing the rupiah amid rising global uncertainty, while supporting the inflation target for 2026–2027 and encouraging economic growth,” BI Governor Perry Warjiyo said during a virtual press conference on Wednesday.

BI has held rates steady since December after delivering a cumulative 150 basis points of easing since September 2024, bringing the policy rate to its lowest level since 2022. Perry said the central bank remains open to further cuts, provided inflation stays under control.

“Going forward, Bank Indonesia will continue to strengthen the transmission of monetary and macroprudential easing already in place, while closely assessing room for further BI-Rate cuts as long as inflation in 2026 and 2027 remains within the 2.5% plus or minus 1% target,” he said.

The inflation rate stood at 2.92% in 2025, according to the Central Statistics Agency (BPS) report.

The central bank reiterated that macroprudential policy will stay pro-growth, with a stronger push to accelerate credit expansion through its macroprudential liquidity incentives, particularly for priority sectors targeted by the government.

On the currency front, BI stressed its commitment to stabilizing the rupiah through market interventions, including spot transactions and non-deliverable forwards, both onshore and offshore, alongside measured purchases of government bonds in the secondary market.

Perry added that BI’s broader policy mix — spanning monetary, macroprudential, and payment system measures — is aimed at safeguarding stability while supporting sustainable economic growth.

“Our policy mix is designed to maintain stability and, at the same time, support more sustainable economic growth,” he said.

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