Gotrade News - Bank Indonesia held its benchmark interest rate steady at 4.75% following the April 21-22, 2026 Board of Governors meeting. The decision aims to stabilize the rupiah, which has weakened to around Rp17,170 per US dollar.
Governor Perry Warjiyo said the move is consistent with strengthening the effectiveness of monetary policy. BI also maintained the deposit facility rate at 3.75% and lending facility rate at 5.50%.
Key Takeaways:
- BI Rate stays at 4.75% to support rupiah stability amid global geopolitical pressures
- March 2026 inflation fell to 3.48% from 4.76% in February, creating policy room
- Indonesia's GDP growth forecast remains at 4.9%-5.7% despite global growth revised down to 3%
March 2026 inflation came in at 3.48% year-over-year according to Bank Indonesia data. That marks a significant drop from 4.76% in February 2026.
The easing inflation gives BI room to hold rates rather than tighten further. The 2026-2027 inflation target remains at 2.5% plus or minus 1%.
BI revised its global economic growth projection down to just 3% for this year. The downgrade reflects Middle East conflict spillover and global financial market volatility.
Indonesia's domestic growth forecast, however, remains at 4.9% to 5.7% for 2026. First-quarter growth was supported by rising domestic consumption following the Lebaran holiday.
Warjiyo emphasized that BI stands ready to strengthen monetary policy further if needed. The priority is keeping the rupiah stable and ensuring inflation stays within target.
The rupiah traded at Rp17,140 per dollar on Tuesday (21/04) according to Bloomberg data. The currency has weakened 0.87% since the end of March 2026.
By Wednesday (22/04) at 2:00 PM Jakarta time, the rupiah was at Rp17,172 per dollar. Pressure on the currency continues amid rising global geopolitical uncertainty.
BI also set the countercyclical capital buffer at 0% and the intermediation ratio at 84-94%. These macroprudential policies aim to support bank lending amid the global slowdown.
Government spending helped drive growth through holiday bonus disbursements and social transfers. Investment was also boosted by the acceleration of priority government programs in early 2026.
Rupiah stabilization remains BI's top priority amid the escalating US-Iran conflict. Market participants expect the benchmark rate to stay at current levels for the coming months.
