Central Bank cuts again: At its meeting on 23 October, the Central Bank of the Republic of Turkey (TCMB) reduced...
BI-Rate in Indonesia
Indonesia's central bank policy rates over the last decade were adjusted up and down multiple times to manage economic growth and inflation. The bank lowered rates to historic lows during the COVID-19 pandemic to stimulate the economy. Post-pandemic, as the economy recovered, there was a gradual shift towards normalizing rates in 2022 and 2023. Since 2024, the Bank has shifted its focus slightly to shore up the rupiah while also supporting economic growth.
The bi-rate ended 2024 at 6.00%, compared to the end-2023 value of 6.00% and the figure a decade earlier of 7.75%. It averaged 5.45% over the last decade. For more interest rate information, visit our dedicated page.
Indonesia Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Indonesia from 2025 to 2024.
Source: Macrobond.
Indonesia Interest Rate Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| BI-Rate (%, eop) | 3.75 | 3.50 | 5.50 | 6.00 | 6.00 |
| 3-Month JIBOR (%, eop) | 4.06 | 3.75 | 6.62 | 6.95 | 6.92 |
| 10-Year Bond Yield (%, eop) | 6.17 | 6.55 | 7.01 | 6.60 | 7.07 |
Central Bank unexpectedly cuts interest rates in September
BI catches market off-guard: At its meeting on 17 September, Bank Indonesia (BI) decided to lower the BI-Rate by 25 basis points to 4.75%. Economists had expected a pause. The BI has now reduced the BI-Rate by a cumulative 150 basis points over the past 12 months.
Focus switches to GDP growth: The decision comes as lawmakers moot changing Bank Indonesia’s mandate, with it expected to bear some of the debt costs of the President’s wide-ranging housing and cooperative programs; lower interest rates will make it cheaper for the government to borrow. The decision also signals that the BI has shifted its focus away from supporting the currency—which depreciated sharply earlier this year, but which has since stabilized—toward supporting economic growth. In terms of inflation, the BI said it expects inflation to remain within its 1.5–3.5% target this year and next, giving it room to ease rates.
Another 25 basis point cut projected in Q4: The Central Bank said it will watch future exchange rate, GDP and inflation data ahead to see if there is room to cut the BI-Rate further. Our panelists project the BI to make another 25 basis point cut by the end of this year, and then another final same-sized reduction in 2026. The BI will announce its next rate decision on 22 October.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Indonesian interest rate projections for the next ten years from a panel of 24 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Indonesian interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Indonesian interest rate projections.
Want to get access to the full dataset of Indonesian interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
-
Turkey: Central Bank decreases rates in October -
Russia: Bank of Russia cuts rate in October Bank reduces rates as expected: At its meeting on 24 October, the Bank of Russia decided to cut the policy... -
Ukraine: National Bank of Ukraine leaves rates unchanged in October Bank stands pat: At its meeting on 23 October, the National Bank of Ukraine (NBU) decided to maintain its policy... -
Hungary: Central Bank leaves rates unchanged in October Central Bank maintains tight monetary conditions: At its meeting on 21 October, the Hungarian National Bank (MNB) left the base... -
Kazakhstan: National Bank of Kazakhstan raises rates in October Rate hike was larger than expected: At its meeting on 10 October, the National Bank of Kazakhstan (NBK) increased the... -
Serbia: NBS leaves rates unchanged in October Central Bank stands pat: At its meeting on 9 October, the National Bank of Serbia (NBS) decided to keep the... -
Philippines: Central Bank decreases rates in October Bank cuts rates unexpectedly: At its meeting on 9 October, the Bangko Sentral ng Pilipinas (BSP) decided to reduce the...