BI Rate Lowered 25 bps to 9.25% - Bank Sentral Republik Indonesia
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November 30, 2020

No. 10/62/PSHM/Humas

In the Board of Governors’ Meeting convened today, Bank Indonesia decided to lower the BI Rate 25 bps to 9.25 %. This decision was taken after a comprehensive evaluation of developments and the outlook in economic and financial conditions at the domestic and global level.

In the view of the Board of Governors, the impact of the financial crisis is taking increasing hold. This is evident from the downward revision in the forecast for world economic from 3.0% to 2.2% for 2009, the effect of which is becoming visible in the Indonesian economy. Falling prices for oil and various other commodities have eased domestic inflationary pressure, as reflected in the recent decline in the monthly inflation figure. Inflation in November 2008 fell to the lowest level for that month in several years. The easing of inflationary pressure is predicted to carry forward into 2009. The 6.5%-7.5% inflation target for 2009 is regarded as achievable, with even the possibility of nearing the lower limit of this band. Concerning the exchange rate, Bank Indonesia is maintaining a constant market presence to steer movement in the exchange rate by means of a stabilisation policy on the forex market aimed at mitigating volatility in the rupiah.

The performance of the national banking industry remains solid overall, reflected in key banking indicators such as the CAR and NPLs. However, signs are emerging of a downturn in bank lending.

Having considered these developments in the domestic economy, the decision to lower the BI Rate to 9.25% is expected to sustain business momentum amid the global economic slowdown while safeguarding macroeconomic stability. 

To resolve the issue of segmentation on the interbank money market, Bank Indonesia has also decided to bring down rates for overnight interbank lending by trimming the rate for repo transactions from BI Rate plus 100 bps to BI Rate plus 50 bps. Complementing this is a move to raise the FASBI short—term deposit rate from BI Rate minus 100 bps to BI rate minus 50 bps.

Bank Indonesia will continue to safeguard economic stability through close coordination with the Government in monitoring global, regional and domestic economic developments. 

A full report on the deliberations of the Board of Governors for December 2008, presenting the latest economic conditions, monetary developments, inflation, exchange rate, balance of payments and economic outlook, will be presented in the Bank Indonesia Monetary Policy Review. This report may be accessed on the Bank Indonesia website ( from 10 December 2008.

Jakarta, 4 December 2008
Office of The Governor

Dyah NK. Makhijani



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