Inp.polri.go.id - Jakarta.  Indonesia's Central Bank, Bank Indonesia (BI), decided to keep its benchmark interest rate (BI-Rate) unchanged at 5.5% following the June Board of Governors Meeting  on Wednesday (18/6/2025).

The deposit facility rate remains at 4.75%, and the lending facility at 6.25%.

The decision was taken in line with Indonesia's projected economy to strengthen in the second half of 2025, with a full-year growth forecast at 4.6–5.4%.

“Policy responses must be strengthened to drive growth, both from domestic demand and external sectors,” said BI Governor Perry Warjiyo), as reported by antaranews.com.

He said that non-oil and gas exports improved in Q2 2025, as exporters moved early to ship goods ahead of potential U.S. tariff changes. However, stronger household consumption and private investment are still needed.

Government support includes early disbursement of civil servant bonuses, transport subsidies, and expanded social aid. BI is also loosening monetary policy through rate cuts, enhanced liquidity, and macroprudential incentives to support lending in growth sectors.

The central bank emphasized that coordinated fiscal, monetary, and structural reforms are critical to sustain momentum amid geopolitical uncertainty and global economic headwinds.

(mg/inp/pr/rs)