Central bank keeps benchmark rate unchanged while strengthening liquidity incentives for economic growth.

Bank Indonesia has decided to maintain its benchmark interest rate at 5.75%, signaling confidence in the country’s inflation outlook while introducing stronger liquidity incentives to support lending and economic growth.

Benchmark Rate Remains Unchanged
Bank Indonesia (BI) kept its benchmark BI-Rate at 5.75% during its latest Board of Governors meeting. The central bank also maintained the Deposit Facility rate at 5.00% and the Lending Facility rate at 6.50%, reflecting its commitment to preserving macroeconomic stability while supporting sustainable economic growth.

Inflation and Rupiah Remain Under Control
BI said the decision was consistent with its efforts to keep inflation within its target range and maintain the stability of the rupiah amid ongoing global economic uncertainty. The central bank noted that Indonesia’s inflation remains manageable despite external pressures, allowing policymakers to maintain an accommodative monetary stance.

Liquidity Incentives Expanded
To encourage bank lending, Bank Indonesia strengthened its macroprudential liquidity incentive framework. The enhanced incentives are designed to increase financing for priority sectors, including housing, agriculture, manufacturing, trade, tourism, and other industries that support job creation and long-term economic development.

Supporting Credit and Domestic Growth
The central bank expects stronger liquidity support to encourage commercial banks to expand lending to businesses and households. Officials believe this approach can stimulate domestic demand without compromising financial system stability, especially as Indonesia continues navigating uncertain global market conditions.

Global Risks Still Closely Monitored
Bank Indonesia acknowledged that risks remain from geopolitical tensions, trade uncertainties, and fluctuations in global financial markets. The central bank said it will continue coordinating with the government and other authorities to safeguard economic resilience while remaining prepared to adjust policy if external conditions change.

Bank Indonesia’s decision to keep the benchmark rate at 5.75% reflects a careful balance between maintaining financial stability and encouraging economic expansion. For Indonesians and Singaporeans, the policy signals continued confidence in Indonesia’s economy while reinforcing efforts to sustain investment, trade, and regional economic growth amid global uncertainty.

Sources: Xinhua (2026) , Kompas (2026)

Keywords: Bank Indonesia, BI Rate, Interest Rate, Inflation, Economic Growth, Monetary Policy