JAKARTA, Nov 19 — Bank Indonesia held its key interest rates unchanged for a second straight policy review today, as expected, opting to continue with efforts to reinforce the impact of past rate cuts as the rupiah comes under renewed pressure.
Bank Indonesia (BI) kept the benchmark seven-day reverse repurchase rate IDCBRR=ECI at 4.75 per cent, as predicted by a majority of economists polled by Reuters.
The overnight deposit facility IDCBID=ECI and lending facility IDCBIL=ECI rates were left steady at 3.75 per cent and 5.50 per cent.
BI has slashed the main rates by a total of 150 bps since September 2024, aiming to stimulate growth in Southeast Asia's biggest economy.
Governor Perry Warjiyo told a press conference that the decision is in line with the short-term focus on maintaining the rupiah's stability.
Economic growth slowed slightly in the third quarter to an annual 5.04 per cent, data showed earlier this month, making it harder for the government to achieve its full-year target of 5.2 per cent.
The government has launched fiscal stimulus measures to raise 2026 growth to 5.4 per cent and eventually meet President Prabowo Subianto's 2029 target of eight per cent.
Complicating BI's rate-cutting cycle is the rupiah's weakness. The rupiah IDR= is the worst-performing emerging Asian currency against the dollar this year, and has steadily weakened since early October to trade near an all-time low.
The annual inflation rate has also risen to 2.86 per cent in October, the highest in 16 months but well within BI's target range of 1.5 per cent to 3.5 per cent.
