JAKARTA, March 19 (Xinhua) -- Bank Indonesia's board of governors meeting on Tuesday and Wednesday decided to keep the benchmark interest rate at 5.75 percent, with the deposit facility at 5.00 percent and the lending facility at 6.50 percent.

"This decision aligns with efforts to maintain inflation forecasts for 2025 and 2026 within the target range of 2.5±1 percent while ensuring rupiah stability amid persistent global uncertainties," Perry Warjiyo, governor of Bank Indonesia, told a press conference on Wednesday.

According to Perry, Bank Indonesia continues to monitor inflation and economic growth prospects to assess potential rate cuts while considering rupiah exchange rate movements.

Macroprudential and payment system policies will be optimized to support long sustainable economic growth, including liquidity incentives to increase bank credit for priority sectors.

The central bank also intensifies its monetary operations, such as pro-market monetary instruments, steps to stabilize exchange rates, and the expansion of digital payments.

Meanwhile, Indonesia's external sector is solid, with a trade surplus of 3.1 billion U.S. dollars in February 2025 and foreign exchange reserves of 154.5 billion dollars, boosting economic resilience.

Bank Indonesia is still committed to stabilizing the rupiah, regulating inflation, and boosting economic growth through a combination of monetary, macroprudential, and payment system policies. Enditem

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