Bank Indonesia lowered its 7-day reverse repurchase rate by 25 bps to 4.0 percent during its July meeting, bringing borrowing costs to the lowest since at least 2016, and agreed to expand bond purchases to support the economy amid the coronavirus pandemic. BI has cut rates by a total of 100 bps this year, on top of 100 bps in reductions in 2019. The central bank also slashed its overnight deposit facility and lending facility rates by 25 bps to 3.25 percent and 4.75 percent, respectively. In June, headline inflation rate declined to 1.96 percent, the lowest since May 2000 and below the central bank's target of 2-4 percent.

Interest Rate in Indonesia averaged 6.89 percent from 2005 until 2020, reaching an all time high of 12.75 percent in December of 2005 and a record low of 4 percent in July of 2020. This page provides - Indonesia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Indonesia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2020. source: Bank Indonesia

Interest Rate in Indonesia is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Indonesia to stand at 3.75 in 12 months time. In the long-term, the Indonesia Interest Rate is projected to trend around 3.75 percent in 2021 and 4.25 percent in 2022, according to our econometric models.

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Indonesia Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
4.00 4.25 12.75 4.00 2005 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-04-14 08:10 AM 4.50% 4.50% 4.5% 4.5%
2020-05-19 07:20 AM 4.50% 4.50% 4.25% 4.25%
2020-06-18 07:25 AM 4.25% 4.50% 4.25% 4.25%
2020-07-16 07:30 AM 4% 4.25% 4.0% 4.25%
2020-08-19 07:30 AM 4% 3.75%
2020-09-17 07:30 AM
2020-10-13 07:30 AM
2020-11-19 07:30 AM


News Stream
Bank Indonesia Cuts Key Policy Rate to 4%
Bank Indonesia lowered its 7-day reverse repurchase rate by 25 bps to 4.0 percent during its July meeting, bringing borrowing costs to the lowest since at least 2016, and agreed to expand bond purchases to support the economy amid the coronavirus pandemic. BI has cut rates by a total of 100 bps this year, on top of 100 bps in reductions in 2019. The central bank also slashed its overnight deposit facility and lending facility rates by 25 bps to 3.25 percent and 4.75 percent, respectively. In June, headline inflation rate declined to 1.96 percent, the lowest since May 2000 and below the central bank's target of 2-4 percent.
2020-07-16
Indonesia Cuts Key Rates by 25bps
The Bank Indonesia cut its benchmark interest rate by 25bps to 4.25 percent on June 18th 2020, in line with market forecasts. It is the third rate cut so far this year, bringing borrowing rates to levels not seen since 2018. Both the deposit and the lending facility rates were cut by 25bps each to 3.5 percent and 5 percent respectively. Policymakers said the move aims to maintain economic stability and help the economic recovery during the coronavirus pandemic. The central bank Governor Warjiyo added that there is room for further rate cuts and the timing would depend on global conditions and ensuring the stability of the rupiah is maintained. The GDP is expected to contract in the second quarter of 2020 although recent developments show that pressure has begun to ease. The economy is seen shrinking between 0.9%-1.9% in 2020 and grow 5%-6% in 2021.
2020-06-18
Bank Indonesia Unexpectedly Holds Policy Rate at 4.5%
Bank Indonesia held its 7-day reverse repurchase rate at 4.50 percent during its May meeting, surprising markets that had forecast a 25bps cut, amid efforts to ensure market stability. The central bank also held its overnight deposit facility and lending facility rates steady at 3.75 percent and 5.25 percent, respectively. Policymakers said there was still room for further rate cuts to support the economy hit by the coronavirus pandemic as inflationary pressures remain low.
2020-05-19
Bank Indonesia Holds Rates, Cuts RRR
Bank Indonesia held its 7-day reverse repurchase rate at 4.50 percent during its April meeting, but lowered the reserve requirement ratio for banks to boost liquidity amid the coronavirus pandemic. Governor Perry Warjiyo said the central bank was cutting the RRR for banks by 200 bps and 50 bps for Islamic banks, releasing a total 117.8 trillion rupiah to support the economy hurt by the Covid-19 outbreak.
2020-04-14

Indonesia Interest Rate
In Indonesia the interest rate decisions are taken by The Central Bank of Republic of Indonesia. In April of 2016, policymakers announced the replacement of the official discount interest rate with new 7-day reverse repurchase rate in August 2016. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis.