Bank Indonesia reduced its lending facility rate by 25bps to 6.00 percent during its September meeting, in an attempt to boost economic growth amid low inflation expectations. Lending Rate in Indonesia averaged 8.08 percent from 2006 until 2019, reaching an all time high of 15.75 percent in March of 2006 and a record low of 5 percent in September of 2017.
Lending Rate in Indonesia is expected to be 6.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Lending Rate in Indonesia to stand at 6.25 in 12 months time. In the long-term, the Indonesia Lending Facility Rate is projected to trend around 6.25 percent in 2020, according to our econometric models.