No. 28/43/DKom 

The Bank Indonesia Board of Governors agreed on 18-19^th February 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%. The decision is consistent with the current policy focus on efforts to strengthen Rupiah exchange rate stabilisation against a backdrop of persistently high global financial market uncertainty to achieve the inflation target in 2026-2027 and foster economic growth. Moving forward, Bank Indonesia will continue strengthening the effectiveness of accommodative monetary and macroprudential policies, while considering room for further BI-Rate reductions in line with manageable inflation forecast in 2026-2027 within the 2.5%±1% target corridor, thereby supporting higher economic growth. Bank Indonesia will maintain the pro-growth stance of macroprudential policy, which includes increasing lending/financing to the real sector, particularly to the Government's priority sectors, while implementing Macroprudential Liquidity Incentive Policy (KLM) to accelerate lower bank lending rates in the banking industry in accordance with prudential principles. Payment system policy remains oriented towards supporting economic growth by strengthening synergy to expand the acceptance of digital payments, while strengthening the structure of the payment system industry as well as the reliability and resilience of payment system infrastructure.

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

1. Strengthening the Rupiah exchange rate stabilisation strategy through intervention, both in offshore non-deliverable forward (NDF) transactions and in domestic markets through spot and domestic non-deliverable forward (DNDF) transactions. This strategy is complemented by the purchase of government securities (SBN) in the secondary market.
2. Strengthening the pro-market monetary operations strategy to attract portfolio inflows to maintain adequate liquidity in the money market and banking industry by managing the interest rate structure and volume of monetary instruments as well as SBN transactions in the secondary market in a measured manner.
3. Strengthening synergy with the Government and other stakeholders to enhance the effectiveness of accommodative macroprudential policy towards reviving lending/financing and lowering interest rates in the banking industry through Indonesian Intermediation Acceleration Program (PINISI) and 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).
4. Developing Indonesia Digital Innovation Center (PIDI) in synergy with relevant authorities, associations and government ministries/agencies, which includes holding a Hackathon as well as empowered and impactful digital talent development program (Digdaya) to be initiated at the end of February 2026.
5. Strengthening national payment system readiness ahead of the Eid-ul-Fitr 1447 H to safeguard the availability, reliability and security of the payment systems operated by Bank Indonesia and the industry, while ensuring the adequate availability of Rupiah currency fit for circulation in suitable denominations throughout all regions of the Republic of Indonesia, including the SERAMBI 2026 program.
   

Bank Indonesia continues strengthening policy coordination with the Government, including close monetary and fiscal policy synergy to maintain stability and foster economic growth. Furthermore, Bank Indonesia is strengthening policy synergy with the Financial System Stability Committee (KSSK), primarily to promote financing for the Government's Asta Cita program. In addition, Bank Indonesia is expanding international cooperation, including payment system connectivity and Local Currency Transactions (LCT), while promoting trade and investment in priority sectors in synergy with relevant institutions.

The global economy remains on a slowing trend, accompanied by persistently high financial market uncertainty. Global economic growth in 2026 is projected to slow from 3.3% in 2025 to 3.2%, with increasing growth divergence across jurisdictions. The global economic moderation primarily stems from the reciprocal tariffs introduced by the United States (US) and ongoing geopolitical tensions, while US growth is expected to increase on the back of massive fiscal stimuli and high investment, including investment in artificial intelligence (AI). The economies of Europe and Japan are also predicted to slow due to weaker export performance in line with global economic moderation and soft domestic demand despite the growing influence of investment in AI. China's economy remains on a slower trend due to sluggish household consumption, while India's economy also remains weak due to declining domestic demand and external sector performance. In the global financial markets, room for further Federal Funds Rate (FFR) cuts remains open in line with continued labour market weakness. UST yields, particularly long-term tenors, are still high in line with increasing fiscal risk in the US. This development has led to more selective capital flows to emerging markets (EM), particularly intoshort-term bonds and equity instruments. Against currencies in other advanced economies (DXY), the US dollar has lost value amid growing demand for safe haven assets, thereby edging up gold prices. Moving forward, global economic uncertainty is expected to remain elevated, thus demanding vigilance and a keen policy response to maintain domestic economic resilience against global spillovers and to accelerate growth.

The Indonesian economy is growing at a higher rate, supported by various policies implemented by the Government and Bank Indonesia. Economic growth in the fourth quarter of 2025 was recorded at 5.39% (yoy), up from 5.04% (yoy) in the third quarter of 2025. Faster economic growth was primarily driven by domestic demand in terms of household consumption and investment given the positive impact of various government policy stimuli and the Bank Indonesia policy mix. Overall, economic growth in 2025 was recorded at 5.11% (yoy), accelerating from 5.03% (yoy) in 2024, accompanied by improvements in employment quality. Stronger economic growth is expected to persist in the first quarter of 2026. Household consumption is increasing, supported by various government stimulus programs, accommodative monetary policy, improving consumer expectations and a seasonal spike in economic activity during several national religious holidays (HBKN) in the first quarter of 2026, including Chinese New Year, Nyepi (Day of Silence) and Eid-ul-Fitr 1447 H. Investment is also expected to accelerate, powered by government investment, including the downstreaming of natural resources, coupled with ongoing improvements in terms of business confidence. Bank Indonesia projects economic growth in 2026 in the 4.9-5.7% (yoy) range in line with various government and Bank Indonesia policies to foster economic growth. Bank Indonesia will continue strengthening its policy mix by optimising the monetary, macroprudential, and payment system policy in close synergy with fiscal stimuli and real sector policies to support higher and more resilient national economic growth.

Indonesia's Balance of Payments (BOP) remains sound amid global uncertainty. In the fourth quarter of 2025, the BOP is projected to remain solid, supported by a trade balance surplus, which in December 2025 recorded a USD2.5 billion surplus, primarily underpinned by exports of natural resources. This development supported a low current account deficit in 2025, ranging from a 0.5% of GDP deficit to a 0.3% surplus. In the first quarter of 2026, the trade balance is expected to maintain a surplus, supported by improving non-oil and gas exports. Meanwhile, portfolio investment in the first quarter of 2026 (as of 13^th February 2026) recorded net inflows of USD1.6 billion, mainly supported by large foreign capital inflows to Bank Indonesia Rupiah Securities (SRBI) and government securities (SBN), while equity instruments recorded net outflows. The position of foreign reserves at the end of January 2026 remained high at USD154.6 billion, equivalent to 6.3 months of imports or 6.1 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, BOP performance in 2026 is forecast to remain solid, supported by a healthy current account deficit of 0.9-0.1% of GDP.

Bank Indonesia continues strengthening its policy to stabilise the Rupiah exchange rate policy against the adverse impact of global financial market uncertainty. The value of the Rupiah on 18^th February 2026 was recorded at Rp16,880 per US dollar, depreciating 0.56% (ptp) relative to the level recorded at the end of January 2026. Rupiah depreciation was primarily influenced by heightened global financial market uncertainty amid increasing domestic corporate demand for foreign exchange in line with increasing economic activity. Bank Indonesia considers the Rupiah undervalued relative to economic fundamentals in Indonesia, which includes consistently maintaining inflation within the 2.5%±1% target corridor in 2026 and 2027. To that end, Bank Indonesia is increasing the intensity of Rupiah stabilisation measures through intervention in offshore NDF markets as well as onshore DNDF and spot markets. Moving forward, Bank Indonesia expects the Rupiah to remain stable and with a strengthening bias, underpinned by ongoing stabilisation measures and solid economic fundamentals, as reflected by attractive yields, low inflation and the positive economic growth outlook for Indonesia.

Consumer Price Index (CPI) inflation remained under control. CPI inflation in January 2026 was recorded at 3.55% (yoy), higher than 2.92% (yoy) the month earlier. The increase was mainly influenced by the base effect of government policy of a 50% household electricity tariff discount in January and February 2025. Meanwhile, core inflation remained low at 2.45% (yoy) in line with adequate economic capacity to meet increasing economic activity. Volatile food (VF) inflation remained low as recorded at 1.14% (yoy) given the increasing supply of red chilis, bird's eye chilis and shallots during the harvesting season. Moving forward, Bank Indonesia is confident that annual inflation in 2026 and 2027 will remain within the 2.5%±1% target range. Core inflation is projected to remain low in line with economic growth that remains below capacity, monetary policy consistency by Bank Indonesia to anchor inflation expectations to the target corridor, as well as low imported inflation. Meanwhile, Bank Indonesia also expects VF inflation to remain controlled, supported by inflation control synergy between Bank Indonesia and the Central and Regional Government Inflation Control Teams (TPIP/TPID), while strengthening implementation of the Inflation Control and Food Prosperity Movement (GPIPS).

Bank Indonesia continues strengthening its monetary policy to support higher economic growth, while maintaining economic stability. The BI-Rate in January 2026 was held at its lowest level since 2022 at 4.75%, following reductions of 150 bps since September 2024, namely 25 bps in September 2024 and 125 bps in 2025. In addition, Bank Indonesia is strengthening its policy to stabilise the Rupiah exchange rate through measured intervention in offshore NDF markets and in domestic markets through spot and DNDF transactions, while also purchasing SBN in the secondary market. Bank Indonesia is also expanding Rupiah liquidity by reducing the outstanding  of SRBI monetary instruments from Rp916.97 trillion at the beginning of 2025 to Rp819.50 trillion on 18^th February 2026. Through monetary and fiscal policy synergy, Bank Indonesia has also purchased SBN amounting to Rp39.92 trillion in 2026 (as of 18^th February 2026), including SBN purchased in the secondary market totalling Rp20.23 trillion. Secondary market purchases of SBN are conducted in line with market mechanisms, in a measured and transparent manner, and are consistent with the monetary programme to maintain economic stability, thereby continuing to maintain the credibility of monetary policy.

Bank Indonesia is strengthening macroprudential liquidity incentive policies (KLM) to support higher economic growth.  The strengthened KLM implementation since 16 December 2025 is directed towards encouraging bank lending/financing to specific sectors determined by Bank Indonesia (lending channel) and the setting of bank lending rates/financing return rates in line with the direction of Bank Indonesia's policy rate (interest rate channel). By strengthening KLM, larger incentives are available to banks that are more responsive in reducing interest rates on new loans in line with the direction of BI-Rate. As of the first week of February 2026, Bank Indonesia disbursed KLM incentives totalling Rp427.5 trillion, with Rp357.9 trillion allocated via the lending channel and Rp69.6 trillion via the interest rate channel. By bank group, KLM incentives received by banks totalling Rp207.1 trillion to state-owned banks, Rp184.8 trillion to national private commercial banks, Rp28.5 trillion to regional government banks and Rp7.1 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 strengthened continuously to further support economic growth. Thus far, BI-Rate reductions of 125 bps in 2025 and monetary liquidity expansion by Bank Indonesia have successfully lowered various interest rates. In the money market, the INDONIA money market reference rate also declined by 211 bps from the beginning of 2025 to 3.92% as of 18^th February 2026. Meanwhile, SRBI rates for tenors of 6, 9, and 12 months also declined by 225 bps, 227 bps, and 223 bps since the beginning of 2025 to 4.91%, 4.93%, and 5.04% on 13^th February 2026. SBN yields on tenors of 2 and 10 years were recorded at 5.06% and 6.38% on 18^th February 2026, respectively. Transmission of the lower BI-Rate to interest rates in the banking industry continues, but remains limited. The 1-month term deposit rate has fallen by 68 bps from 4.81% in January 2025 to 4.13% in January 2026, yet further efforts are required to reduce the availability of special rates to large depositors, which currently account for 26.42% of total third-party funds (TPF). Lower deposit rates must also be transmitted to lower lending rates in the banking industry, which have only fallen by 40 bps from 9.20% at the beginning of 2025 to 8.80% in January 2026. Going forward, efforts to reduce banks' funding costs and lending rates need to be further strengthened to encourage higher credit growth in support of sustainable economic growth.

Money supply maintained high growth in line with BI policy to enhance the effectiveness of monetary liquidity expansion to support economic growth. In January 2026, growth of base money (M0) remained high at 11.0% (yoy), relatively stable compared with 11.4% (yoy) in December 2025. By component, M0 growth in January 2026 was influenced by persistently high growth of currency in circulation in response to increasing economic activity and bank deposits at Bank Indonesia. In terms of the contributing factors, persistently high M0 growth in January 2026 was supported by increasing fiscal operations by the Government in line with fiscal stimuli as well as monetary expansion. Meanwhile, growth of broad money (M2) accelerated to 9.6% (yoy) in December 2025 from 8.3% (yoy) in November 2025. Based on the affecting factors, higher M2 growth was primarily driven by fiscal expansion and disbursed loans. Moving forward, money supply growth will continue to be managed through policy synergy between Bank Indonesia and the Government to support economic growth.

Bank lending growth needs to be further strengthen by the banking industry to support economic growth. Loans disbursed by the banking industry in January 2026 recorded 9.96% (yoy) growth, up slightly from 9.69% (yoy) in December 2025. By loan type, investment loans, working capital loans, and consumer loans grew by 22.38% (yoy), 4.13% (yoy), and 6.58% (yoy) respectively, in January 2026. Positive loan performance was supported by increasing economic activity, accommodative monetary and macroprudential policies implemented by Bank Indonesia as well as the realisation of government priority programs. Looking ahead, the prospect of higher credit growth remains quite strong, supported by both supply and demand sides. On the demand side, the use of bank financing must be increased, particularly undisbursed loans that remain significant at Rp2,506.47 trillion or 22.65% of the loans available. On the supply side, adequate bank financing capacity is supported by a ratio of liquid assets to third-party funds (LA/TPF) at 27.54% and high deposit growth of 13.48% (yoy) in January 2026. In addition, bank appetite to lend is increasing, as reflected by looser lending requirements, excluding consumer loans and MSME loans due to persistently high credit risk affecting both segments. Overall, Bank Indonesia projects growth of loans disbursed by the banking industry in 2026 in the 8-12% range. Moving forward, Bank Indonesia will continue strengthening coordination with the Government and KSSK Committee to improve the interest rate structure and revive bank lending/financing.

Banking system resilience remains strong, supported by ample bank liquidity, strong capital adequacy and low credit risk. The Capital Adequacy Ratio (CAR) in December 2025 remained high at 25.89%, which 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 2.05% (gross) and 0.79% (net) in December 2025. The BI stress tests indicate solid banking industry resilience in the face of various risk scenarios, supported by maintained corporate repayment capacity and profitability. Bank Indonesia will continue strengthening policy synergy with the KSSK Committee to mitigate various risks that could potentially disrupt financial system stability.

Digital economic and financial transactions maintained high growth in January 2026, supported by secure, seamless and reliable payment systems. The volume of digital payments[1] in January 2026 grew 39.65% (yoy) to reach 4.79 billion transactions, supported by broader acceptance of digital payments. Transaction volume through mobile and internet banking applications grew 10.00% (yoy) and 23.25% (yoy), respectively, including digital payment transaction volume through QRIS, which continued to grow strongly by 131.47% (yoy) growth. Strong QRIS growth was supported by increasing numbers of users and merchants. From an infrastructure perspective, the volume of retail transactions processed through BI-FAST grew 34.41% (yoy) to reach 455 million transactions, with a value of Rp1,176 trillion in January 2026. On the large-value transaction, the BI-RTGS system processed 0.86 million transactions in January 2026, with the transaction value increasing by 7.60% (yoy) to reach Rp19,555 trillion. In terms of Rupiah currency management, currency in circulation grew 12.41% (yoy) to Rp1,267 trillion in January 2026.

Payment system stability has been maintained, supported by stable infrastructure and a sound industry structure. Stable infrastructure is reflected in the seamless and reliable payment systems maintained by Bank Indonesia, along with an adequate money supply of currency fit for circulation in appropriate denominations in January 2026. A healthy payments industry structure is reflected by increasing payment system interconnection, accompanied by the continued expansion of the digital economy and finance ecosystem. Moving forward, Bank Indonesia will continue strengthening the structure of the payment industry, with a focus on risk management and the reliability of infrastructure technology among industry players in accordance with implementation of Bank Indonesia Regulation (PBI) Number 10 of 2025 concerning Payment System Industry Regulation (PBI PISP). Meanwhile, Bank Indonesia will ensure the smooth operation of the national payment system during the Ramadan and Eid-ul-Fitr 1447 H festive period. In terms of cashless payments, Bank Indonesia will maintain the availability, reliability and security of retail and wholesale payment systems and infrastructure operated by Bank Indonesia and the industry. On the cash side, Bank Indonesia will consistently safeguard the adequate availability of rupiah currency fit for circulation in suitable amounts throughout all regions of the Republic of Indonesia through the SERAMBI 2026 program. Money exchange services at strategic locations will be strengthened through the PINTAR application. Meanwhile, Bank Indonesia will consistently maintain the availability of Rupiah currency fit for circulation in appropriate denominations throughout all regions of the Republic of Indonesia, particularly in frontier, outermost and remote regions.

Jakarta, 19^th February 2026
Communication Department
Ramdan Denny Prakoso
Executive Director