Indonesia Tasa De Interés

Bank Indonesia lowered its benchmark interest rate by 25 basis points to 5.5% during its May 2025 policy meeting, in line with market expectations. The decision reflects the central bank’s confidence in maintaining low and stable inflation within the 2.5% ± 1% target range for both 2025 and 2026, while also supporting Rupiah stability and fostering economic growth. Annual inflation accelerated to 1.95% in April 2025 from 1.03% in March, marking its highest level since August 2024, yet it remained comfortably within the central bank’s target band. Meanwhile, the Rupiah strengthened by 1.13% on a point-to-point basis against the US dollar (as of May 20, compared to end-April) and also appreciated against the currencies of key emerging market trade partners and major non-USD currencies. The overnight deposit facility and lending facility rates were also lowered by 25 basis points to 4.75% and 6.25%, respectively.