Business17 December, 20252 min read
Bank Indonesia Holds Rates at 4.75% to Defend Rupiah Amid Currency Pressure
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Bank Indonesia kept the 7-day reverse repurchase rate at 4.75%. Decision marks third consecutive meeting with no policy-rate change.
5 outlets told this the same way.
Bank Indonesia rate pause
Bank Indonesia held policy rates steady at a 7-day reverse repo rate of 4.75%, with the overnight deposit rate at 3.75% and the lending rate at 5.50%. This marked the third consecutive meeting without a change as the central bank prioritised rupiah stability amid elevated global uncertainty. Governor Perry Warjiyo said the pause was intended to 'support the rupiah amid high global uncertainty while assessing the impact of earlier easing'.
“Bank Indonesia held policy rates steady for the third straight meeting: 7-day reverse repo at 4.75%, overnight deposit at 3.75% and lending at 5.50%.”
The pause follows 150 basis points of cuts between September 2024 and September 2025, and 18 of 31 Reuters-polled economists had expected the hold. Coinpaper also reported that BI is prioritizing rupiah stability over further easing and noted the decision came even as BI raised its growth outlook. By contrast, NST Online provided only navigation/header material and did not offer additional reporting on the decision.
Rupiah and FX policy
The policy hold reflects pressure on the rupiah. Business Times notes the rupiah has been one of the weakest Asian currencies against the dollar. Coinpaper says persistent global volatility and external risks have prompted BI to intervene in domestic and offshore FX markets and to resist immediate policy-rate loosening.
The government measure requiring exporters to keep dollar earnings onshore longer is cited by both Business Times and Coinpaper as an attempt to boost local dollar supply. NST Online offers no substantive coverage to compare, highlighting that some outlets provided operational details while others did not.
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BI growth and inflation outlook
Both outlets report that Bank Indonesia (BI) has raised its growth projections while noting that inflation remains contained. Business Times records BI's forecast of GDP growth at 4.9-5.7% for next year (vs 4.7-5.5% in 2025) and expects inflation to remain well within its 1.5-3.5% target, with November inflation at 2.72%. Coinpaper likewise notes BI raised its 2026 GDP outlook to 4.9-5.7% and highlighted November inflation at 2.72%, well inside the 1.5-3.5% target.
“BI forecasts GDP growth of 4.9–5.7% for next year (vs 4.7–5.5% in 2025) and expects inflation to remain well within its 1.5–3.5% target (November inflation 2.72%).”
Commentators read this as leaving scope for future interest-rate cuts if inflation remains low. NST Online provides no article text to corroborate or dispute these figures.
Bank Indonesia coverage
Coinpaper provides additional detail on Bank Indonesia's policy toolkit to support credit without further loosening, including expanding liquidity and offering larger reserve-requirement reductions to banks that cut lending rates. It also cites economists warning that ongoing rupiah volatility could limit future easing, with some forecasting cumulative cuts of no more than about 50 basis points through 2026.
The Business Times emphasizes the decision's intent to defend the currency and to assess prior easing, noting Governor Warjiyo's assessment. NST Online lacks a comparable article, creating a gap in coverage among the provided sources.