Bank Indonesia (BI) Held Policy Rate at 4.75% Amid External Pressures

Bank Indonesia (BI) Held Policy Rate at 4.75% Amid External Pressures 
BI kept its benchmark rate unchanged at 4.75% in the Apr-26 RDG, along with deposit facility at 3.75% and lending facility at 5.5%, in line with market expectations, as the central bank prioritizes rupiah stability amid rising global uncertainties driven by Middle East tensions, while signaling limited room for future rate cuts and reaffirming commitment to maintain inflation within the 2.5% ±1% target range through policy optimization. (Bloomberg Technoz) 

Bank Indonesia (BI) Stepped Up Measures to Support Rupiah Stability 

BI intensified efforts to stabilize the rupiah through SBN purchases (IDR 111.54 tn YTD), SRBI issuance (IDR 885.41 tn), and FX reserves utilization (USD 148.2 bn), alongside stronger FX interventions, as the rupiah weakened to IDR 17,140/USD; despite 1Q26 capital outflows, early 2Q inflows resumed, supported by higher yields and stable external balances. (Bloomberg Technoz) 

Lending Rates Down 44 bps as Monetary Easing Transmits 

Bank Indonesia (BI) reported continued transmission of monetary easing into lower banking rates, with lending rates declining 44 bps to 8.76% in Mar-26 (from 9.20% in Jan-25) and 1-month deposit rates falling 62 bps to 4.19%, supported by ample liquidity, while BI emphasized the need for further rate reductions—partly by limiting special rates (26.30% of DPK)—to accelerate credit growth and support sustainable economic expansion. (Bloomberg Technoz) 

Indonesia Banking Credit Growth Reached 9.49% YoY in March 2026

Bank Indonesia (BI) reported banking credit growth of 9.49% YoY in Mar-26 (vs. 9.37% in Feb-26), driven by strong investment loans (+20.85%) alongside working capital (+4.38%) and consumer loans (+5.88%), with ample liquidity reflected in AL/DPK at 27.85% and DPK growth of 13.55% YoY, while undisbursed loans of IDR 2,527.46 tn indicate further room for expansion despite tighter risk in consumer and MSME segments; meanwhile, digital transactions surged to 14.39 bn (+33.76% YoY) in 1Q26, supported by growth in mobile/internet banking and QRIS (+111.94% YoY), with BI-FAST reaching 1.4 bn transactions and BI-RTGS value rising 11.26% YoY to IDR 51,490 tn. (Bloomberg Technoz)