The overnight deposit facility rate – Fasbi - was also lowered by 25 bps to 5.50 percent while the lending facility rate was left on hold at 8 percent.
The central bank now targets inflation between 3 and 5 percent in 2015. Consumer prices slowed to 6.96 percent in January, from a 12-month high of 8.36 percent in December.
In 2014, Indonesia's economic growth was the lowest in five years hurt by a slowdown in private and public spending and lower exports. And in January 2015, the country posted the highest trade surplus in ten months as imports declined much faster than imports.