No.27/84/DKom ​

The Bank Indonesia Board of Governors decided on 22^nd-23^rd April 2025 to hold the BI-Rate at 5.75%, while also maintaining the Deposit Facility (DF) rate and Lending Facility (LF) rate at 5.00% and 6.50%, respectively. The decision is consistent with efforts to maintain inflation in 2025 and 2026 within the 2.5±1% target corridor, maintain rupiah exchange rate stability in line with economic fundamentals despite increasing global uncertainty, and drive economic growth. Moving forward, Bank Indonesia will continue monitoring inflation and the economic growth outlook in terms of considering further room for monetary easing based on rupiah exchange rate movements. Meanwhile, Bank Indonesia continues optimising pro-growth macroprudential and payment system policies to foster sustainable economic growth. Bank Indonesia has raised the Macroprudential Liquidity Incentive Policy (KLM), effective from 1^st April 2025, to revive bank lending/financing to priority sectors that support growth and job creation in line with the Government's Asta Cita program. Payment system policy is also directed towards bolstering economic growth, particularly in the trade and MSME sectors, strengthening reliable infrastructure and reinforcing the structure of the payment system industry, while expanding acceptance of payment system digitalisation.

Bank Indonesia has, therefore, strengthened its monetary, macroprudential and payment system policy mix to maintain stability and support sustainable economic growth through the following measures:

1. ​Stabilising the rupiah in line with economic fundamentals primarily through intervention in offshore non-deliverable forward (NDF) transactions as well as domestic foreign exchange market intervention with a focus on spot and domestic non-deliverable forward (DNDF) transactions, while also purchasing government securities (SBN) in the secondary market to maintain financial market stability and sufficient liquidity in the banking industry.
2. Strengthening the pro-market monetary operations strategy to enhance monetary policy transmission effectiveness, accelerate money market and foreign exchange market deepening and attract foreign capital inflows by:
1. maintaining the interest rate structure of monetary instruments and forex swaps to attract portfolio inflows to domestic financial assets,
2. strengthening the strategies for term-repo and forex swap transactions to maintain sufficient liquidity in the money market and banking industry, and
3. strengthening the function of Primary Dealers (PD) to increase Bank Indonesia Rupiah Securities (SRBI) transactions in the secondary market and repurchase agreement (repo) transactions between market players.
3. Strengthening the implementation of accommodative macroprudential policy to revive credit/financing growth in pursuit of sustainable economic growth, while maintaining the stability of the financial system by:
   
1. ​strengthening Macroprudential Liquidity Incentive Policy (KLM), effective from 1^st April 2025, to revive bank lending/financing to economic sectors that support job creation,
2. holding: (i) the Countercyclical Capital Buffer (CCyB) at 0%, (ii) the Macroprudential Intermediation Ratio (MIR) in the 84-94% range, (iii) the Macroprudential Liquidity Buffer (MPLB) at 5% with repo flexibility of 5%, and (iv) the sharia Macroprudential Liquidity Buffer (MPLB) at 3.5% with repo flexibility of 3.5%,
3. strengthening implementation of the Bank Foreign Funding Ratio (RPLN) to foster bank funding for liquidity management and disbursing loans to the real sector.
4. Strengthening prime lending rate (PLR) transparency policy with a focus on interest rates by KLM policy priority sector (Appendix).
5. Expanding digital acceptance by: (i) implementing strategies to achieve QRIS targets on the supply and demand sides, (ii) educating merchants and users at various travel destinations concerning QRIS Cross-Border, (iii) expanding National Open API Payment Standard (SNAP) implementation to integrate payment industry services, and (iv) strengthening the stability of payment infrastructure and the supervision of Payment Service Providers (PSP) and supporting institutions.​

Bank Indonesia is also strengthening policy coordination with the Government to maintain stability and nurture economic growth in line with the Government's Asta Cita program. Synergy is focused on 7 (seven) policy areas, namely: (i) rupiah stabilisation policy to mitigate global shocks, (ii) monetary and fiscal policy coordination, (iii) efforts to revive economic financing through KLM policy, (iv) support to accelerate digital transformation within the Government, (v) efforts to strengthen food security and downstreaming, (vi) support to foster development of the green, Islamic and inclusive economy, and (vii) support for the development of human capital. In addition, Bank Indonesia will continue strengthening policy synergy with the Financial System Stability Committee (KSSK) to maintain the stability of the financial system. Meanwhile, Bank Indonesia will also strengthen and expand international cooperation among central banks, including payment system connectivity and local currency transactions (LCT), while promoting trade and investment in priority sectors in synergy with other relevant institutions.

Global economic uncertainty has increased since the introduction of Reciprocal Tariff Policy by the United States (US). The announcement of reciprocal tariff policy at the beginning of April 2025, followed by the retaliatory measures of China and potentially other countries as well, has exacerbated global economic fragmentation and eroded world trade volume. Consequently, global economic growth in 2025 is projected to moderate from 3.2% to 2.9%, with the biggest declines felt in the US and China due to the ensuing tariff war. Economic growth in other advanced and developing economies is also expected to slow, given the direct impact of lower exports to the US and the indirect impact of lower trade volume with other countries. The tariff war and negative fallout on growth in the United States, China and globally has heightened global financial market uncertainty and triggered risk aversion among investors. US Treasury yields are down and the DXY Index is weaker, amid growing expectations of a Federal Funds Rate (FFR) reduction. Global capital flows are experiencing a rebalancing from the US to safe haven assets, particularly financial assets in Europe and Japan, as well as gold. Meanwhile, global capital outflows from developing economies are persisting, thus intensifying currency pressures. Deteriorating global conditions demand a strong and coordinated policy response, therefore, to strengthen external resilience, maintain stability and drive domestic economic growth.

Economic growth in Indonesia was maintained in the first quarter of 2025 despite increasing global uncertainty. Positive household consumption growth was supported by economic confidence and income stability. Government spending in relation to the Religious Holiday Allowance, social spending and various other incentives, accompanied by a seasonal spike in demand during the Eid-ul-Fitr celebrations, also boosted household consumption. Investment, specifically non-building investment, continued to bolster economic growth, as reflected by an increase in capital goods imports, particularly heavy equipment. Non-oil and gas exports in the first quarter of 2025 also increased, primarily supported by manufacturing commodities, such as machinery as well as iron and steel, to ASEAN member states. Spatially, economic growth in various regions remains solid, particularly in Kalimantan and Java. Moving forward, the reciprocal tariff policy of the US and retaliatory measures taken by China and potentially other countries, could impact the economic growth outlook for Indonesia. Bank Indonesia forecasts domestic economic growth in 2025 slightly below the midpoint of the 4.7-5.5% range, influenced by the direct impact of US import tariffs on lower Indonesian exports bound for the US and the indirect impact of weaker export demand from Indonesia's other trading partners, particularly China. Consequently, various policies must be strengthened to mitigate the impact of global economic moderation by stimulating domestic demand and utilising opportunities to boost exports. Bank Indonesia continues strengthening its monetary and macroprudential policy mix to maintain stability and support economic growth, while accelerating payment system digitalisation. Meanwhile, Bank Indonesia also continues strengthening synergy with the fiscal stimuli of the (central and local) Government and fully supporting implementation of the Government's Asta Cita program.

Indonesia's Balance of Payments (BOP) remains sound, thereby supporting external resilience. Indonesia amassed a trade surplus in March 2025 totalling USD4.3 billion, up from USD3.1 billion the month earlier. Meanwhile, foreign capital inflows to domestic financial instruments for investment in the form of portfolio inflows since the beginning of the year until the end of March 2025 recorded a net inflow totalling USD1.6 billion. In April 2025 (as of 21^st April 2025), portfolio investment recorded a net outflow of USD2.8 billion due to the strong impact of global uncertainty after the US Administration announced its reciprocal tariff policy. The latest developments indicate early signs that outflow pressures are beginning to subside, particularly in terms of government securities (SBN), in line with the robust economic outlook for Indonesia, accompanied by solid external resilience. The position of foreign reserves at the end of March 2025 was recorded high at USD157.1 billion, equivalent to 6.7 months of imports or 6.5 months of imports and servicing government external debt, which is well above the international adequacy standard of around 3 months of imports. In 2025, solid BOP performance will be supported by a manageable current account deficit in the 0.5-1.3% of GDP range, accompanied by a maintained capital and financial account surplus despite persistently high global uncertainty.

Rupiah exchange rates remain under control, underpinned by Bank Indonesia's stabilisation policy despite increasing global financial market uncertainty. Against the US dollar, the rupiah on 27^th March 2025 stood at Rp16,560, gaining 0.12% (ptp) in value compared with the level recorded at the end of February 2025. Notwithstanding, strong currency pressures on rupiah exchange rates materialised in offshore markets (NDF) during the domestic national religious holiday to celebrate Eid-ul-Fitr 1446 H, triggered by US reciprocal tariff policy. On 7^th April 2025, Bank Indonesia intervened continuously in offshore NDF markets in Asia, Europe and New York to stabilise the rupiah against intense global pressures. This optimal policy response had the desired result of controlling and strengthening the rupiah to Rp16,855 per US dollar on 22^nd April 2025 from a level of Rp16,865 when the domestic markets opened after the national holiday on 8^th April 2025. Rupiah movements remain in line with other regional currencies and consistent with domestic economic fundamentals to maintain economic stability. Moving forward, Bank Indonesia expects to maintain rupiah stability, underpinned by Bank Indonesia's commitment to rupiah exchange rate stability, together with attractive yields, low inflation and a promising economic growth outlook for Indonesia. Furthermore, Bank Indonesia continues strengthening its stabilisation policy response, including measured intervention in offshore NDF markets and triple intervention strategy with a focus on spot and domestic non-deliverable forward (DNDF) transactions, while also purchasing government securities (SBN) in the secondary market. Bank Indonesia also continues optimising the full panoply of monetary instruments available, which includes strengthening its pro-market monetary operations strategy through the SRBI, Bank Indonesia Foreign Exchange Securities (SVBI) and Bank Indonesia Foreign Exchange Sukuk (SUVBI) instruments to boost policy effectiveness in terms of attracting portfolio inflows and supporting efforts to strengthen the rupiah exchange rate.

Consumer Price Index (CPI) inflation remained low in March 2025, thus strengthening economic stability. CPI inflation in March 2025 was recorded at 1.03% (yoy), accompanied by manageable core inflation recorded at 2.48% (yoy) in line with BI-Rate policy consistency by Bank Indonesia to anchor inflation expectations. Volatile food (VF) inflation stood at 0.37% (yoy), supported by the adequate supply of major food commodities and close synergy to manage inflation between Bank Indonesia and the Central and Regional Government Inflation Control Teams through the National Movement for Food Inflation Control (GNPIP) in various regions. Meanwhile, administered prices recorded shallower 3.16% (yoy) deflation in the reporting period compared with 9.02% (yoy) deflation the month earlier, which was primarily influenced by the discontinuation of government policy to discount electricity rates for households with an installed electrical capacity of <2,200VA. Looking ahead, Bank Indonesia is confident CPI inflation will remain under control and within the 2.5%±1% target corridor in 2025 and 2026. Core inflation is projected to remain manageable in line with anchored inflation expectations, adequate economic capacity, managed imported inflation, as well as the positive impact of digitalisation. Bank Indonesia also expects volatile food (VF) inflation to remain manageable, underpinned by inflation control synergy between Bank Indonesia and the (central and regional) Government.

Bank Indonesia continues strengthening its monetary policy response, which includes optimising its pro-market monetary operations strategy to strengthen rupiah stability and achieve the inflation target. As an integral part of money market and foreign exchange market deepening efforts and to attract foreign capital inflows to domestic financial markets, Bank Indonesia continues optimising its pro-market SRBI, SVBI and SUVBI monetary instruments. As of 21^st April 2025, the respective positions of SRBI, SVBI and SUVBI instruments stood at Rp881.86 trillion, USD1.40 billion and USD277 million. Therefore, non-resident holdings of SRBI totalled Rp209.90 trillion as of 21^st April 2025, accounting for 23.80% of total outstanding. The implementation of Primary Dealers (PD) since May 2024 has also increased SRBI transactions in the secondary market along with repurchase agreement (repo) transactions between market players, thereby strengthening the effectiveness of monetary instruments that support rupiah stability and inflation control. In addition, Bank Indonesia is also buying SBN in the secondary market to strengthen monetary operations in close synergy with the fiscal policy of the Government. In 2025 (as of 22^nd April 2025), Bank Indonesia has purchased SBN to the tune of Rp80.98 trillion, namely through the secondary market totalling Rp54.98 trillion and the primary market totalling Rp26.00 trillion, dominated by treasury bills (SPN), including sharia SPN. Moving forward, Bank Indonesia will continue optimising the various innovations already introduced to strengthen external economic resilience in Indonesia and enhance the effectiveness of monetary policy transmission.

Monetary policy transmission remains effective despite higher risk stemming from volatile global dynamics. In line with the BI-Rate reduction implemented in January 2025 and the monetary operations strategy instituted by Bank Indonesia, the IndONIA money market reference rate also trended downwards, namely to 5.77% on 21^st April 2025 from 6.03% at the beginning of January 2025. Despite decreasing, SRBI rates remain attractive to support foreign capital inflows at 6.59%, 6. 61% and 6.64% for tenors of 6, 9 and 12 months (as of 16^th April 2025), down from 7.16%, 7.20% and 7.27% at the beginning of January 2025. On the other hand, SBN yields on tenors of 2 years also remained competitive despite decreasing from 6.96% to 6.54%, while yields on 10-year tenors decreased to 6.94% from 6.98%. Meanwhile, interest rates in the banking industry remain low given the implementation of KLM strengthening efforts and PLR transparency policy, thus maintaining competitive interest rates in the banking industry. Sufficient liquidity has improved pricing efficiency in the banking industry, thus boosting new loan disbursements. The 1-month term deposit rate and lending rate were also relatively stable in March 2025 at 4.77% and 9.20%, respectively.

Growth of loans disbursed by the banking industry remains positive, thereby supporting economic growth. Credit growth stood at 9.16% (yoy) in March 2025, down from 10.30% (yoy) in February 2025. Growth of investment loans remained comparatively high at 13.36% (yoy), while growth of consumer loans and working capital loans were recorded at 9.32% (yoy) and 6.51% (yoy), respectively. On the supply side, lending standards and liquidity conditions remain ad, despite early signs of some banks facing funding constraints in terms of third-party funds (TPF) and other funding sources to disburse new loans. On the demand side, the main contributors to credit growth are the manufacturing industry, mining sector and social services, contrasting the limited contribution of the construction sector and trade. Sharia financing recorded 9.18% (yoy) growth, while MSME loan growth stood at 1.95% (yoy) in the reporting period. Moving forward, various global uncertainty risks and their potential impact on the domestic economy demand vigilance due to the possible effect on the demand for credit and preferred liquid asset placements in the banking industry. Bank Indonesia projects growth of loans disbursed by the banking industry to move towards the lower end of the 11-13% range in 2025. Bank Indonesia will, therefore, continue strengthening accommodative macroprudential policies, which includes optimising KLM policy, and strengthening implementation of the Bank Foreign Funding Ratio (RPLN) to nurture bank funding for liquidity management and loan disbursements to the real sector. Bank Indonesia will also continue strengthening coordination with the Financial System Stability Committee (KSSK) to drive credit growth and support economic financing.

Bank Indonesia continues strengthening KLM policy to bolster credit growth in the banking industry.  Effective from 1^st April 2025, the KLM incentives have been increased from 4% to a maximum of 5% of third-party funds. As of the second week of April 2025, Bank Indonesia has disbursed KLM incentives totalling Rp370.6 trillion, increasing by Rp78.3 trillion from Rp292.3 trillion in the fourth week of March 2025. In the housing sector, KLM incentives increased by Rp84.0 trillion from the fourth week of March 2025 given implementation of KLM strengthening efforts, effective from 1^st April 2025. Bank Indonesia has disbursed KLM incentives to state-owned banks totalling Rp161.7 trillion, national private commercial banks totalling Rp167.4 trillion, regional government banks totalling Rp35.7 trillion and foreign bank branches totalling Rp5.8 trillion. By sector, Bank Indonesia has disbursed incentives to priority economic sectors, namely agriculture, real estate, public housing, construction, trade and manufacturing, transportation, storage, tourism and the creative economy, MSMEs, ultra-micro and green.

Banking industry resilience remains solid, thereby strengthening financial system stability. Bank liquidity remained sufficient in March 2025, as reflected by a high ratio of liquid assets to third-party funds (LA/TPF) at 26.22%. The Capital Adequacy Ratio (CAR) also remained high in February 2025 at 26.95%, supported by low non-performing loans (NPL), as a proxy of credit risk, as indicated by NPL ratios of 2.22% (gross) and 0.81% (nett). Overall, the latest BI stress tests indicate solid banking industry resilience, supported by maintained corporate repayment capacity and profitability. In addition, Bank Indonesia will continue strengthening policy synergy with the KSSK Committee to mitigate various domestic and global economic risks that could potentially disrupt banking industry resilience and financial system stability.

Digital economic and financial transactions continued growing in the first quarter of 2025, supported by secure, seamless and reliable payment systems. Digital payments^[1] grew 33.50% (yoy) to reach 10.76 billion transactions in Q1/2025, supported by all components. Transaction volume through mobile and internet banking applications grew 34.51% (yoy) and 18.89% (yoy), respectively. Similarly, digital payment transaction volume through QRIS continued to enjoy impressive 169.15% (yoy) growth, supported by increasing numbers of users and merchants. From an infrastructure perspective, the volume of retail transactions processed through BI-FAST grew 57.68% (yoy) to reach 1.07 billion transactions, with a value of Rp2,741.81 trillion. On the wholesale or high-value side, the BI-RTGS system processed 2.47 million transactions, up 0.69% (yoy), with a transaction value of Rp46,281.21 trillion. In terms of rupiah currency management, total currency in circulation grew 15.51% (yoy) to Rp1,240.12 trillion in the first quarter of 2025. Digital transactions via QRIS during the Ramadan and Eid-ul-Fitr festive period in 2025 also increased, with average transaction volume growth per user reaching 111% (yoy), accelerating from 76% during the same festive period in 2024. Meanwhile, total currency in circulation grew 8.63% (yoy) during the Ramadan and Eid-ul-Fitr festive period in 2025, up slightly from 8.44% (yoy) in the same festive period in 2024.

Payment system stability has been maintained, supported by stable infrastructure and a sound industry structure. In terms of the infrastructure, payment system stability is reflected in the seamless and reliable payment system maintained by Bank Indonesia, along with an adequate money supply of currency fit for circulation in the first quarter of 2025, including the Ramadan and Eid-ul-Fitr festive period. Regarding the structure of the payments industry, payment system interconnection and the digital economy and finance ecosystem continue to expand. Payment transactions based on the National Open API Payment Standard (SNAP) continue to grow as SNAP adoption among various industry players expands. Meanwhile, Bank Indonesia will continue ensuring the availability, reliability and security of the payment systems operated by Bank Indonesia and the industry. Furthermore, Bank Indonesia will ensure adequate availability of rupiah currency fit for circulation in suitable denominations throughout all regions of the Republic of Indonesia, particularly in frontier, outermost and underdeveloped regions.

Jakarta, 23^rd April 2025
Communication Department
Ramdan Denny Prakoso
Executive Director

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