Arnoldus Kristianus, Jakarta – Bank Indonesia (BI) decided to keep its benchmark rate steady at 4.75 percent during its Board of Governors Meeting on Oct. 21-22, 2025, maintaining a cautious stance amid global uncertainty.

The central bank also left the Deposit Facility Rate and Lending Facility Rate unchanged at 3.75 percent and 5.50 percent, respectively.

"This decision is consistent with BI's outlook that inflation in 2025 and 2026 will remain within the target range of 2.5 1 percent, while supporting rupiah stability in line with economic fundamentals," BI Governor Perry Warjiyo said during an online press conference on Wednesday.

Bank Indonesia has cut its policy rate seven times since 2024, once last year and six times this year, totaling a 150-basis-point reduction from its peak of 6.25 percent.

Economists had been divided ahead of this month's meeting. Some expected another rate cut, while others saw little urgency for further easing.

Panin Sekuritas Head of Research Nico Laurens said market consensus had leaned toward a 25-basis-point cut, though opinions remained split. "Inflation at 2.65 percent is still manageable and within BI's target, but the rupiah's recent move from Rp 16,000 to Rp 16,500 per dollar likely kept BI cautious," Nico said during a market briefing on Wednesday.

Permata Bank Chief Economist Josua Pardede added that BI still has room to ease policy without undermining inflation control or consumer purchasing power. "The recent uptick in inflation came mostly from volatile food prices, while core inflation remains stable, showing that demand-side pressures are under control," he said on Tuesday.

Source: https://jakartaglobe.id/business/bank-indonesia-holds-benchmark-rate-at-47