November 19, 2025 | 05:44 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) has opted to hold its benchmark interest rate, known as the BI Rate, steady at 4.75 percent. The central bank finalized this decision during the Board of Governors Meeting concluded on November 19, 2025.
"The Board of Governors Meeting on November 18 and 19, 2025, decided to maintain the BI Rate at 4.75 percent," announced BI Governor Perry Warjiyo during a virtual press conference on Wednesday, November 19, 2025.
BI also maintained the deposit facility interest rate at 3.75 percent and the lending facility interest rate at 5.5 percent.
According to Perry, the decision aligns with the central bank's short-term strategy focused on stabilizing the rupiah exchange rate and attracting foreign investment in anticipation of increasing global uncertainty. This rate stability follows a cumulative 150 basis points (bps) cut to the BI Rate implemented between September 2024 and October 2025. This marks the second consecutive month BI has held the rate steady at 4.75 percent.
Market Expectations and Future Cuts
The decision was widely anticipated by the market. Chief Economist of Citi Indonesia, Helmi Arman, had correctly predicted that Bank Indonesia would maintain the benchmark interest rate, citing several factors.
First, Helmi highlighted the tight yield spread between Indonesian bonds and U.S. bonds. Second, he noted continued capital outflow from the domestic market. "In early November, there was still an outflow from the bond and SRBI (Bank Indonesia Rupiah Securities) markets," Helmi stated when meeting reporters in Jakarta on Tuesday, November 18, 2025.
Nevertheless, Helmi believes the benchmark interest rate could still be lowered twice more. He projected the first decrease to 4.50 percent would occur in December, followed by a subsequent cut to 4.25 percent in March 2026. This prediction is based on the expectation that core inflation will remain stable and fall within BI's target range of 2.5 percent (plus or minus 1 percent).
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