Bank Indonesia left its benchmark 7-day reverse repo rate unchanged at 6 percent on May 16th 2019, as widely expected. Policymakers said the decision is consistent with efforts to maintain the external stability of the Indonesian economy amid uncertainty over the increasing global financial market. The lending and the deposit facility rates were also left steady at 6.75 percent and 5.25 percent respectively. Interest Rate in Indonesia averaged 7.05 percent from 2005 until 2019, reaching an all time high of 12.75 percent in December of 2005 and a record low of 4.25 percent in September of 2017.

Interest Rate in Indonesia is expected to be 6.00 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 6.50 in 12 months time. In the long-term, the Indonesia Interest Rate is projected to trend around 6.50 percent in 2020, according to our econometric models.

Indonesia Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2019-02-21 07:00 AM Interest Rate Decision 6.0% 6.0% 6% 6.0%
2019-03-21 07:30 AM Interest Rate Decision 6% 6.0% 6% 6.0%
2019-04-25 07:30 AM Interest Rate Decision 6% 6% 6% 6%
2019-05-16 07:30 AM Interest Rate Decision 6% 6% 6% 6%
2019-06-20 07:30 AM Interest Rate Decision 6%
2019-07-18 07:30 AM Interest Rate Decision
2019-08-22 07:30 AM Interest Rate Decision



Indonesia Leaves Rate Steady as Expected

Bank Indonesia left its benchmark 7-day reverse repo rate unchanged at 6 percent on May 16th 2019, as widely expected. Policymakers said the decision is consistent with efforts to maintain the external stability of the Indonesian economy amid uncertainty over the increasing global financial market. The lending and the deposit facility rates were also left steady at 6.75 percent and 5.25 percent respectively.

Excerpts from the Bank Indonesia Press Release:

Indonesia's economic growth is lower than the forecast influenced by the declining global economy. Indonesia's economy in the first quarter of 2019 grew 5.07% (yoy), lower than the previous quarter of 5.18% (yoy), although it increased from 5.06% in the first quarter of 2018. The decline in global economic growth and more commodity prices low has had an impact on the decline in Indonesia's export growth, which then affects household consumption and slowing non-construction investment. The effect of spending related to 2019 Election activities on consumption is lower than forecast. Spatially, the slowdown in national economic growth was mainly influenced by declining growth in Java, Kalimantan and Papua, while other regions increased. Forward, efforts to boost domestic demand in terms of investment, especially the private sector, need to be increased to mitigate the negative impact of the lack of recovery in export performance due to the global economic slowdown. Overall, Bank Indonesia predicts Indonesia's 2019 economic growth to be below the midpoint of the range 5.0-5.4%. Bank Indonesia will take a policy mix with the Government and related authorities to maintain the momentum of economic growth.

The weakening Rupiah exchange rate in May 2019 was affected by the impact of global uncertainty and the seasonal pattern of increasing foreign exchange demand. After earlier strengthening in April 2019, the Rupiah exchange rate on May 15, 2019 was recorded to weaken 1.45% point to pointcompared to the final level of April 2019 and 1.36% on average compared to the average of April 2019. The weakening rupiah exchange rate in May 2019 was inseparable from the influence of global sentiment related to escalating trade wars which put pressure on emerging market currencies, including the Rupiah. In addition, the seasonal pattern of increasing foreign exchange demand for the needs of non-resident dividend payments also affected the weakening of the rupiah. Going forward, Bank Indonesia views the Rupiah exchange rate will move stably with market mechanisms that are maintained in line with the outlook for the improved BOP 2019. To support the effectiveness of exchange rate policies and strengthen domestic financing, Bank Indonesia continues to accelerate financial market deepening, both in the money market and foreign exchange.

April 2019 inflation is under control so that it sustains overall economic stability. The Consumer Price Index (CPI) inflation remained low, which in April 2019 was recorded at 0.44% (mtm) or 2.83% (yoy), although it increased compared to the previous month's inflation of 0.11% (mtm) or 2.48 % (yoy). The increase in April 2019 inflation was mainly influenced by the increase in volatile food inflation and administered prices inflation, while core inflation was stable. Inflation volatile food mainly sourced from commodity onions, peppers and eggs. Administered prices inflationmainly from air freight and cigarette tariffs. Meanwhile, controlled core inflation is inseparable from the consistency of Bank Indonesia's policies in directing inflation expectations, including in maintaining exchange rate movements in accordance with its fundamentals. Going forward, Bank Indonesia will remain consistent in maintaining price stability and strengthening policy coordination with the Government, both at the central and regional levels, to ensure inflation remains low and stable which is predicted to be below the midpoint of the 3.5 ± 1% inflation target range in 2019.


Bank Indonesia l Agna Gabriel | agna.gabriel@tradingeconomics.com
5/16/2019 9:47:11 AM



Indonesia Money Last Previous Highest Lowest Unit
Interest Rate 6.00 6.00 12.75 4.25 percent [+]
Money Supply M0 583394.79 571119.68 625370.48 2983.00 IDR Billion [+]
Money Supply M1 1426409.80 1387014.00 1457149.70 317.90 IDR Billion [+]
Interbank Rate 7.25 7.25 57.79 4.19 percent [+]
Money Supply M2 5744240.90 5671462.20 5760046.20 5156.00 IDR Billion [+]
Foreign Exchange Reserves 124300.00 124539.31 131979.64 27404.30 USD Million [+]
Loans to Private Sector 4652218.00 4586518.00 4652218.00 286724.00 IDR Billion [+]
Deposit Interest Rate 5.25 5.25 56.00 3.00 percent [+]
Lending Rate 6.75 6.75 15.75 5.00 percent [+]
Loan Growth 11.05 11.55 90.50 -59.90 percent [+]
Cash Reserve Ratio 6.50 6.50 8.00 5.00 percent [+]


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. This page provides - Indonesia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Indonesia Interest Rate - actual data, historical chart and calendar of releases - was last updated on May of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
6.00 6.00 12.75 4.25 2005 - 2019 percent Daily




Country Last Previous
Argentina 71.22 May/19
Turkey 24.00 Apr/19
Mexico 8.25 May/19
Russia 7.75 Apr/19
South Africa 6.75 May/19
Brazil 6.50 May/19
India 6.00 Apr/19
Indonesia 6.00 May/19
China 4.35 Apr/19
Saudi Arabia 3.00 Apr/19
United States 2.50 May/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 May/19
United Kingdom 0.75 May/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Apr/19


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