Inp.polri.go.id - Jakarta.  The Board of Governors of Bank Indonesia (BI) concluded its two-day policy meeting on Tuesday, March 17, 2026, by maintaining the benchmark BI-Rate at 4.75%. In a coordinated effort to stabilize the national economy, the central bank also held the Deposit Facility rate at 3.75% and the Lending Facility rate at 5.50%. 

Governor Perry Warjiyo said that this decision is a strategic move to fortify the Rupiah against external shocks caused by the escalating conflict in the Middle East and to ensure inflation remains within the target range of 2.5% ±1%.

"Bank Indonesia will continue to optimize various monetary instruments to strengthen external resilience from the possible escalation of the Middle East war," Governor Perry said during a virtual press conference on Tuesday (17/3/2026), as reported by antaranews.com. 

He noted that the conflict, which intensified in late February 2026, has significantly worsened the global economic outlook, driving up international oil prices and disrupting global supply chains. Consequently, world economic growth for 2026 is now projected to slow to 3.1%, down from the previous estimate of 3.2%, as global inflation rises to 4.1%.

The central bank also highlighted the increasing pressure from the US financial market, characterized by a strengthening US Dollar and rising US Treasury yields. These factors have triggered capital outflows from emerging markets toward "safe haven" assets. Governor Perry stressed that the current global climate necessitates a reinforced synergy between fiscal and monetary policies to maintain Indonesia's external stability while continuing to support domestic growth.

(mg/inp/pr/rs)