TEMPO.CO, Jakarta - Governor of Bank Indonesia (BI) Perry Warjiyo said that the ability to cut the benchmark interest rate, or BI Rate, will be increasingly limited in the future. According to him, the conflict in the Middle East has strengthened the U.S. dollar index and caused foreign capital to withdraw from the domestic financial market.
Perry stated that BI needs to recalibrate various policies towards stability. "Although we maintain our BI-Rate at 4.75 percent, it seems that the possibility of reducing it in the future is increasingly limited, and we also have to act to maintain stability," said Perry during a working meeting with the House of Representatives' Commission XI in Jakarta, Wednesday, 8 April 2026.
BI has also increased the auction of Indonesian Rupiah Securities (SRBI) since the beginning of this year. This step reverses the 2025 strategy in which BI reduced SRBI circulation to support liquidity expansion. According to Perry, the strategy of increasing SRBI aims to attract capital inflows to the domestic market while maintaining exchange rate stability.
Another policy is the purchase of State Bonds in the secondary market. "This year, we have bought Rp90.05 trillion year-to-date. That's what we have done," said Perry.
Throughout 2025, BI has lowered the benchmark interest rate five times by 125 basis points to 4.75 percent. This position is the lowest since 2022.
In the Board of Governors meeting in March 2026, BI decided to maintain the benchmark interest rate at 4.75 percent. BI also decided to maintain the deposit facility interest rate at 3.75 percent and the lending facility interest rate at 5.50 percent.
Read: Indonesia's Forex Reserves Fall to $148.2 Billion in March 2026
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