Indonesia Interest Rate

Last Release

Jan 15, 2025

Actual

5.75

Units In

Frequency

Daily

Next Release

Feb 19, 2025

Time to Release

1 Months 2 Days 9 Hours

Highest	Lowest	Average	Date Range	Source
12.75 Dec 2005	3.5 Feb 2021	6.4 %	2005-2025	Bank Indonesia

In Indonesia the interest rate decisions are taken by The Central Bank of Republic of Indonesia. In April of 2016, policymakers announced the replacement of the official discount interest rate with new 7-day reverse repurchase rate in August 2016. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis.

Latest Updates

The Bank of Indonesia unexpectedly cut its benchmark interest rate by 25 bps to 5.75% during its January 2025 meeting, defying market expectations of a pause. This decision aligned with the central bank's commitment to maintaining inflation within the target range of 2.5±1% for 2025 and 2026, stabilizing the Rupiah, and supporting economic growth amid global uncertainty. Indonesia's annual inflation rate edged up to 1.57% in December 2024 from 1.55% in November, remaining comfortably within the target range. The Rupiah has remained stable, weakening by only 1% as of January 14, 2025, compared to the end of 2024, buoyed by Bank Indonesia’s stabilization measures. Meanwhile, the economic growth for 2024 is projected to come in slightly below the midpoint of the 4.7–5.5% target range, with 2025 growth also expected to fall short of earlier forecasts. The overnight deposit facility and lending facility rates were also lowered by a quarter point to 5% and 6.5%, respectively.