​No. 28/65/DKom 

The Bank Indonesia Board of Governors agreed on 16-17th March 2026 to hold the BI-Rate at 4.75%, while also maintaining the Deposit Facility (DF) rate at 3.75% and the Lending Facility (LF) rate at 5.50%. This decision is an effort to strengthen Rupiah exchange rate stability against the impact of worsening global conditions caused by the war in the Middle East, to support the achievement of the 2026–2027 inflation target of 2.5%±1%. Bank Indonesia will continue to strengthen the policy mix response to mitigate the impact of global spillovers on the national economy by optimizing the various monetary instruments available, including the necessary adjustment measures to consistently maintain national economic stability. Meanwhile, Bank Indonesia is also strengthening macroprudential policy to promote economic growth through increased credit/financing to the real sector, while maintaining financial system stability. Payment system policy remains directed at supporting economic activity through strengthened synergy to expand digital payment acceptance, reinforce the payment system industry structure, and enhance the reliability and resilience of payment system infrastructure. 

The direction of the monetary, macroprudential, and payment system policy mix to maintain stability, while supporting sustainable economic growth, is also supported by the following policy measures:

1. Strengthening the Rupiah exchange rate stabilization strategy through intervention, both in offshore non-deliverable forward (NDF) transactions and in domestic markets through spot and domestic non-deliverable forward (DNDF) transactions.
2. Strengthening the pro-market monetary operations strategy to attract foreign portfolio inflows, while maintaining adequate liquidity in the money market and banking system by managing the interest rate structure and volumes of monetary instruments, as well as measured secondary-market SBN transactions.
3. Strengthening foreign exchange market policy, effective from April 2026, to support Rupiah exchange rate stability by:
   1. adjusting the cash threshold for buying foreign currencies against the Rupiah from USD100,000 to USD50,000 per customer per month, 
   2. raising the threshold for selling DNDF/Forwards from USD5 million to USD10 million per transaction, and 
   3. raising the threshold for buying and selling Swaps from USD5 million to USD10 million per transaction.
4. Strengthening regulations concerning the reporting of Foreign Exchange Flows (LLD) by adjusting the threshold for supporting documents for outgoing foreign exchange fund transfers from USD100,000 to USD50,000, effective from April 2026.
5. Enhancing the effectiveness of accommodative macroprudential policy by publishing the assessment of prime lending rate (PLR) transparency, with a focus on interest rates based on priority sectors in accordance with the scope of KLM policy (Appendix 1) as well as strengthening synergy with the Government and other stakeholders to boost higher lending/financing through the Indonesian Intermediation Acceleration Program (PINISI).
6. Launching QRIS Cross-Border between Indonesia and South Korea in April 2026 as an integral part of the efforts to expand cross-border digital payment connectivity and accelerate digital acceptance.
7. Launching the Indonesia Digital Innovation Center (PIDI) in April 2026 to accelerate Digital Economy and Finance (EKD) transformation, including through digital talent development (Digital Talenta Berdaya dan Berkarya – Digdaya), organized in synergy with relevant authorities, associations, and ministries/agencies.
8. Implementing the KATALIS P2DD program for capacity building and literacy synergy to accelerate and expand regional digitalization as a quarterly inter-regional synergic forum and knowledge hub to accelerate and expand the electronification of regional government transactions, including the quality of public services.
9. Strengthening the readiness of the national payment system ahead of the 2026 Eid-ul-Fitr (1447 H) festive period, by ensuring the availability, reliability, and security of Bank Indonesia Payment Systems (SPBI) and industry payment systems, and by guaranteeing the availability of high-quality Rupiah currency nationwide, including through the Semarak Rupiah Ramadan dan Berkah Idulfitri (SERAMBI) 2026 program.

Bank Indonesia continues to strengthen policy coordination with the Government, including close synergy between monetary and fiscal policies to mitigate the impact of global uncertainty triggered by the war in the Middle East on the domestic economy, thereby jointly maintaining stability and supporting economic growth. Policy synergy with the Financial System Stability Committee (KSSK) is also strengthened, particularly to promote financing for the Government's Asta Cita programs. In addition, Bank Indonesia continues to strengthen and expand international cooperation in central banking areas, including payment system connectivity and local currency transactions, as well as facilitating investment and trade promotion in priority sectors in collaboration with relevant institutions.

The war in the Middle East since the end-February 2026 is placing considerable pressure on the global economic conditions and outlook. The surge in global oil prices has negatively affected cross-border trade supply chains, thereby lowered the global growth outlook and increased global inflationary pressures. Global financial markets have also deteriorated, marked by the strengthening of the US dollar, rising US Treasury yields, and capital outflows from emerging markets. Global economic growth in 2026 is projected to slow to 3.1% from the previous forecast of 3.2%, despite a reduction in US reciprocal tariffs. Global inflation is also expected to increase from 3.8% to 4.1%, thereby narrowing the room for global monetary policy easing, including the possibility of further delays in lowering the Federal Funds Rate (FFR). US Treasury yields have continued to rise in line with the widening US fiscal deficit, including higher war-related spending. Global investment risk premiums have increased, leading to a shift in capital flows towards safe-haven assets, particularly the US money market. The US dollar index against major currencies (DXY) has strengthened. The deterioration in global economic and financial conditions due to the war in the Middle East has exerted further pressure on emerging market currencies and complicated economic management, thus requiring stronger fiscal and monetary policy responses and synergy to maintain external resilience while supporting domestic economic growth. 

Stronger economic growth momentum in Indonesia must be maintained amid the ongoing war in the Middle East. Indonesia's economic growth in the first quarter of 2026 increased, supported by domestic demand. Household consumption increased, supported by rising household demand related to national religious holidays (HBKN), in line with improvements in income across several groups stemming from the disbursement of the mandatory religious holiday allowance, government social spending and various other government incentives. Investment is also expected to remain solid, primarily driven by the acceleration of government investment, including Village/Sub-district Cooperatives Merah Putih (KDKMP) and Danantara investment. Going forward, the impact of worsening global economic and financial conditions due to the war in the Middle East needs to be anticipated and responded to appropriately to maintain the momentum of national economic growth. To that end, policy synergy between the Government, Bank Indonesia and other stakeholders must be strengthened to maintain domestic demand and support growth in the 4.9-5.7% range. Economic confidence, including households and businesses, must be maintained to continue promoting household consumption and investment. Various government programs that have a strong impact on driving economic growth and absorbing labor, while maintaining fiscal resilience, will continue to be implemented. Bank Indonesia will continue to strengthen the monetary, macroprudential, and payment system policy mix in close synergy with Government policies to maintain stability while supporting economic growth. 

Indonesia's Balance of Payments (BOP) must continue to be strengthened to mitigate the impact of the war in the Middle East. The trade balance in January 2026 recorded a USD1.0 billion surplus, lower than the surplus of USD2.5 billion in December 2025 due to slower global demand for non-oil and gas exports. Cumulatively, the capital and financial account in January-February 2026 recorded net inflows of USD1.6 billion, supported by foreign capital inflows to Bank Indonesia Rupiah Securities (SRBI). In March 2026, portfolio investment recorded net outflows of USD1.1 billion, triggered by rising global financial market uncertainty due to the war in the Middle East. Indonesia's reserve assets at end-February 2026 were maintained at USD151.9 billion, equivalent to 6.1 months of imports or 5.9 months of imports and the servicing of government external debt, which is well above the international adequacy standard of around 3 months of imports. Moving forward, the lower global economic growth outlook and rising global oil price require attention due to the potential impact on a wider current account deficit towards the upper bound of the deficit range of 0.9% to 0.1% of GDP. Therefore, policy synergy to strengthen BOP performance and external resilience, which includes building global investor confidence, will continue to be strengthened. 

Bank Indonesia will continue to strengthen policies to maintain Rupiah exchange rate stability amid worsening global conditions due to the war in the Middle East. As of 16th March 2026, the Rupiah exchange rate stood at Rp16,985 per US dollar, depreciating by 1.29% (ptp) compared with the level at end-February 2026 in line with the weakening of non-USD currencies. To maintain Rupiah exchange rate stability, Bank Indonesia continues to intensify intervention measures in offshore NDF markets as well as spot and DNDF transactions in the domestic market. In addition, Bank Indonesia is also optimizing all monetary instruments available to increase foreign capital inflows and reinforce Rupiah exchange rate stability. Moving forward, the various efforts taken to strengthen BOP performance are also expected to support Rupiah exchange rate stability. Bank Indonesia expects the Rupiah to remain stable, supported by Bank Indonesia's commitment, attractive yields, and solid domestic economic growth prospects. 

Consumer Price Index (CPI) inflation remains under control. CPI inflation in February 2026 was recorded at 4.76% (yoy), mainly influenced by a temporary base effect from the Government's policy of providing a 50% discount on household electricity tariffs in January and February 2025. Core inflation was contained at 2.63% (yoy), primarily driven by rising gold prices. Volatile food (VF) inflation was recorded at 4.64% (yoy), remaining under control amid increased demand during the Chinese New Year and Ramadan 1447 H periods and reduced supply due to weather disruptions. Bank Indonesia expects CPI inflation in 2026 and 2027 to remain within the 2.5%±1% target corridor, although higher than the previous projection due to rising global commodity price prospects. Core inflation is projected to remain under control, while VF inflation will increase due to higher global food and fertilizer prices. Bank Indonesia will continue to strengthen its pre-emptive monetary policy response in synergy with the Government through the Central/Regional Government Inflation Control Teams (TPIP/TPID), through strengthening implementation of the Inflation Control and Food Prosperity Movement (GPIPS) to contain inflation within the target range. 

Bank Indonesia's monetary policy continues to be strengthened to reinforce economic stability and support growth. The BI-Rate in February 2026 was maintained at its lowest level since 2022 at 4.75%, following cumulative reductions of 150 bps since September 2024, namely by 25 bps in September 2024 and 125 bps during 2025. Rupiah exchange rate stabilization policy has also been strengthened through interventions in offshore NDF markets and in the domestic market through spot, DNDF transactions, as well as purchases of SBN in the secondary market. Rupiah liquidity expansion has also been pursued by Bank Indonesia by reducing the outstanding position of the SRBI monetary instrument from Rp916.97 trillion at the beginning of 2025 to Rp831.55 trillion as of 13th March 2026. Bank Indonesia has also purchased SBN as a part of close synergy between monetary and fiscal policies, amounting to Rp86.16 trillion in 2026 (up to 16th March 2026), including Rp46.72 trillion in secondary-market purchases. Secondary-market SBN purchases are conducted in accordance with market mechanisms, in a measured and transparent manner, and consistent with the monetary program to maintain macroeconomic stability, thereby preserving monetary policy credibility. 

Bank Indonesia continuously optimizes its Macroprudential Liquidity Incentive Policy (KLM) to promote stronger bank lending/financing to priority sectors, thereby supporting higher economic growth. Implementation of the enhanced KLM, effective since 16th December 2025, is directed at providing higher bank lending/financing disbursements to specific sectors designated by Bank Indonesia (lending channel) as well as ensuring that banks are more responsive in lowering interest rates on new loans in line with the direction of Bank Indonesia's policy rate (interest rate channel). As of the first week of March 2026, Bank Indonesia disbursed KLM incentives totaling Rp427.1 trillion, with Rp357.6 trillion allocated via the lending channel and Rp69.5 trillion via the interest rate channel. By bank group, the KLM incentives received by banks totaled Rp225.6 trillion to state-owned banks, Rp165.8 trillion to national private commercial banks, Rp28.0 trillion to regional government banks and Rp7.7 trillion to foreign bank branches. By sector, the incentives were primarily disbursed to priority sectors, namely agriculture, manufacturing, and downstream sectors; services, including the creative economy, construction, real estate and housing, as well as the MSME, cooperatives, inclusive, and green sectors. 

The transmission of monetary policy easing to lower interest rates in the banking industry needs to be continuously strengthened to further promote higher economic growth. To date, the 125-bps reduction in the BI-Rate during 2025 and Bank Indonesia's monetary liquidity expansion have contributed to declines in various interest rates. In the money market, INDONIA has declined by 186 bps since the beginning of 2025 to 4.16% as of 16th March 2026. SRBI interest rates for tenors of 6, 9, and 12 months decreased by 191 bps, 190 bps, and 194 bps, respectively, from the beginning of 2025 to 5.25%, 5.30%, and 5.33% as of 13th March 2026. Meanwhile, yields on 2-year and 10-year SBN were recorded at 5.99% and 6.88%, respectively, as of 16th March 2026. Transmission of policy rate reductions to bank interest rates continues, although at a more limited pace. The 1-month deposit rate has declined by 64 bps, from 4.81% in January 2025 to 4.17% in February 2026. Therefore, efforts to reduce the application of special rates to large depositors, currently accounting for 26.64% of total third-party funds, need to be strengthened further. The decline in deposit rates also needs to be more fully transmitted to bank lending rates. Lending rates in February 2026 stood at 8.80%, only decreasing by 40 bps from 9.20% in January 2025. Going forward, efforts to reduce bank deposit and lending rates must continue to be enhanced to promote higher credit growth and support sustainable economic growth. 

The money supply growth remains well maintained in line with Bank Indonesia's policy to enhance the effectiveness of monetary liquidity expansion. Base money (M0) growth in February 2026 was recorded at 13.3% (yoy), higher than 11.0% (yoy) in January 2026. By component, M0 growth in February 2026 was influenced by faster growth of currency in circulation in response to the growing need for currency during the Ramadan and Eid-ul-Fitr holiday period. In terms of the affecting factors, higher M0 growth in February 2026 was driven by fiscal expansion and monetary operations strategy. In line with this, broad money (M2) growth increased from 9.6% (yoy) in December 2025 to 10.0% (yoy) in January 2026. In terms of the contributing factors, the stronger M2 growth was influenced by net claims on the Central Government and increased credit disbursement. Moving forward, the growth of money in circulation will continue to be managed through policy synergy between Bank Indonesia and the Government to support economic growth. 

Banking credit growth continues to be strengthened to support economic growth. Disbursed loans in February 2026 grew by 9.37% (yoy), slightly lower than 9.96% (yoy) in January 2026. By loan type, the latest developments were supported by investment loans, working capital loans, and consumer loans, which grew by 20.72% (yoy), 3.88% (yoy), and 6.34% (yoy) respectively, in February 2026. Bank Indonesia projects credit growth in 2026 to remain in the 8-12% range, influenced by demand and supply side factors. On the demand side, the utilization of bank financing can be increased, particularly by optimizing still sizeable undisbursed loan facilities, which amounted to Rp2,536.40 trillion, or 22.86% of available credit lines. On the supply side, the banks' financing capacity remains adequate, supported by a Liquid Assets to Third-Party Funds (LA/TPF) ratio of 27.40% and robust TPF growth of 13.18% (yoy) in February 2026. In addition, bank lending appetite remains sound, as reflected in persistently accommodative lending requirements, except in the consumer and MSME segments due to still elevated credit risk in those segments. Seeking to boost bank loan disbursements, Bank Indonesia will continue strengthening funding capacity, including the development of non-traditional funding (non-TPF) instruments. Meanwhile, Bank Indonesia will continue to strengthen coordination with the Government and KSSK to keep improving the interest rate structure and to promote bank lending/financing growth. 

Banking system resilience remains strong thus expected be able to mitigate the potential impact of risks posed by the war in the Middle East. This is indicated by ample banking liquidity, persistently high capital capacity and contained credit risk. The Capital Adequacy Ratio (CAR) of the banking industry stood at a high level of 25.87% in January 2026, indicating strong capacity to absorb risk and support credit growth. On an aggregate basis, non-performing loans (NPL) remained low in the banking industry at 2.14% (gross) and 0.82% (net) in January 2026. The results of Bank Indonesia's stress tests indicate that banking resilience remains strong in facing various risks, including the impact of global spillovers from the war in the Middle East, supported by stable corporate repayment capacity and profitability. Bank Indonesia will continue to strengthen macroprudential policy and policy synergy with the KSSK to mitigate global uncertainty spillover risks that could potentially disrupt financial system stability. 

The growth of digital economic and financial transactions i​n February 2026 remained high, supported by secure, seamless, and reliable payment systems. Digital payment[1] transaction volume reached 4.67 billion, growing 40.35% (yoy) in February 2026, supported by broader digital payment acceptance. Transaction volumes through mobile and internet applications grew by 9.49% (yoy) and 22.16% (yoy), respectively, including QRIS transactions, which continued to expand strongly by 133.20% (yoy). This positive performance was supported by an increase in the number of users and merchants. On the infrastructure side, retail transaction volumes processed through BI-FAST reached 434 million transactions, growing 31.49% (yoy), with transaction value amounting to Rp1,092 trillion in February 2026. Large-value transaction volumes processed through BI-RTGS totaled 0.76 million transactions, contracting by 5.33% (yoy), while BI-RTGS transaction value increased by 9.19% (yoy) to Rp16,105 trillion in February 2026. In terms of Rupiah currency management, Currency in Circulation (UYD) grew 15.78% (yoy) to Rp1,287 trillion in February 2026. 

Payment system stability remains preserved, supported by stable infrastructure and a sound industry structure. Stable infrastructure is reflected in the smooth and reliable operation of the Bank Indonesia Payment Systems (SPBI) and industry payment systems, as well as adequate supply of currency in sufficient quantity and quality in February 2026. A sound industry structure is reflected in the strengthening of interconnections among participants in the payment system, accompanied by an expanding Digital Economy and Finance (Ekonomi Keuangan Digital/EKD) ecosystem. Going forward, Bank Indonesia will continue to strengthen the payment system industry structure, particularly risk management and the reliability of industry participants' technology infrastructure, in line with the implementation of Bank Indonesia Regulation No. 10 of 2025 on Payment System Industry Regulation (PBI PISP). Bank Indonesia will also ensure the smooth operation of the national payment system, including during the Ramadan and Eid-ul-Fitr 1447 H holiday period. On the non cash side, Bank Indonesia will safeguard the availability, reliability, and security of SPBI infrastructure, both retail and wholesale, as well as industry payment system infrastructure. On the cash side, Bank Indonesia will ensure the availability of high-quality Rupiah currency in sufficient quantities across all regions of the Republic of Indonesia through the ongoing Semarak Rupiah Ramadan dan Berkah Idulfitri (SERAMBI) 2026 program. Currency exchange services at strategic locations will be strengthened through the Penukaran dan Tarik Uang Rupiah (PINTAR) application and the provision of money exchange services in  at public crowd centers. Bank Indonesia will consistently ensure the availability of Rupiah currency in sufficient quantities and fit-for-circulation quality throughout the territory of the Republic of Indonesia, including in Frontier, Outermost, and Remote (3T) areas.

Jakarta, 17 March 2026
Communication Department
Ramdan Denny Prakoso
Executive Director

[1] Digital payments include transactions through mobile and internet applications.