TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
BI keeps rate unchanged amid flagging rupiah
Bank Indonesia (BI) has decided to keep its key interest rates in place as the rupiah remains weak, and noted that mounting global pressure stemming from trade disruption threatens Indonesia’s economic growth.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
The logo of Bank Indonesia (BI) is seen in front of the central bank's building in Jakarta. (JP/Rafaela Chandra)
B
ank Indonesia (BI) has decided to keep its key interest rates in place as the rupiah remains weak, and noted that mounting global pressure stemming from trade disruption threatens Indonesia’s economic growth.
Following the central bank’s two-day monthly policy meeting, BI Governor Perry Warjiyo announced in a press conference on Wednesday that the key interest rate, the BI Rate, will remain at 5.75 percent, where it has been since the central bank slashed it by 25 basis points (bps) in January.
“Global economic uncertainties have been pushed higher by America’s reciprocal tariff policy,” Perry said, explaining that the policy had forced the central bank to revise down its projection for global economic growth from the initial forecast of 3.2 percent to 2.9 percent.
United States President Donald Trump announced earlier this month that the US would impose a 10 percent blanket tariff on almost all imports, followed by varying additional tariffs for countries the US has a trade deficit with, 32 percent in Indonesia’s case.
Just hours after the so-called reciprocal tariff took effect, Trump announced a 90-day pause on the policy, during which countries can negotiate with Washington, and Jakarta was among the countries offering concessions to avert the reciprocal tariffs.
The pause does not apply to China, which is the main target of the US trade policy and faces punishingly high import tariffs on goods shipped to the US.
