January 21, 2026 | 04:01 pm
TEMPO.CO, Jakarta - Indonesia's central bank, Bank Indonesia, has kept its benchmark rate at 4.75 percent. "Bank Indonesia's Board of Governors' Meeting on January 20 and 21, 2026, decided to maintain the [interest rate] at 4.75 percent," said BI Governor Perry Warjiyo on Wednesday, January 21, 2026.
Bank Indonesia also decided to keep the deposit facility interest rate at 3.75 percent and the lending facility interest rate at 5.50 percent.
According to Perry, the decision is consistent with the central bank's latest policy focus to stabilize rupiah's exchange rate, support 2026-2027 inflation targets, and boost economic growth.
He stated that moving forward, Bank Indonesia will continue to improve the transmission of monetary and macroprudential policy relaxation while keeping an eye on further interest rate cuts.
Earlier, the Institute for Economic and Social Research of the Faculty of Economics and Business at the University of Indonesia (LPEM FEB UI) assessed that Bank Indonesia needs to maintain the benchmark interest rate at 4.75 percent. LPEM FEB UI researcher Teuku Riefky noted the trend of growing inflation by the end of 2025.
Furthermore, the rupiah is increasingly under pressure. "Maintaining the benchmark interest rate at 4.75 percent will help maintain the interest rate gap, support market confidence, and restrain currency volatility amid ongoing global uncertainty," said Riefky in the Macroeconomic Analysis Series on Wednesday, January 21, 2026.
Read: 3 Factors That Could Push Inflation Above 3% in the First Quarter
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