Governor of Bank Indonesia Perry Warjiyo said that since September 2024, the central bank has lowered the benchmark rate six times, from 6 percent to 4.75 percent, totaling a 150-basis-point reduction.
The adjustment is part of BI’s policy mix strategy aimed at stimulating economic growth while maintaining macroeconomic stability.
Alongside the rate cuts, BI has strengthened rupiah stability through interventions in the offshore Non-Deliverable Forward (NDF) market and domestic operations via the spot market, Domestic NDF (DNDF), as well as through purchases of government securities (SBN) in the secondary market.
In line with these efforts, BI has set competitive foreign exchange monetary instrument rates to maintain the attractiveness of fund placements in Indonesia and support rupiah exchange rate stability.
In terms of liquidity management, BI has expanded rupiah liquidity by reducing its position in Bank Indonesia Rupiah Securities (SRBI) from Rp916.97 trillion at the beginning of 2025 to Rp707.05 trillion as of October 21, 2025.
The synergy between monetary and fiscal policies is reflected in BI’s government securities purchases, which reached Rp268.36 trillion as of October 21, 2025.
This includes secondary market purchases and a debt-switching program with the government amounting to Rp199.45 trillion.
The measures are implemented prudently, transparently, and in line with market mechanisms to maintain the credibility of monetary policy.
BI has also reinforced its policy stance through macroprudential liquidity incentives (KLM) and accelerated digital payment system transformation to support national economic growth.
The decision to keep the BI Rate at 4.75 percent was made during the Bank Indonesia Board of Governors’ Meeting (RDG) held in Jakarta on October 21–22, 2025.
Related news: Rupiah under control, supported by stabilization policies: BI
Translator: Uyu Septiyati Liman, Primayanti
Editor: M Razi Rahman
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