The decision
At its 23 September meeting, Bank Indonesia (BI, the country's central bank) left the BI-Rate unchanged at 5.75%. The deposit facility rate stayed at 4.75% and the lending facility at 6.50%.
The rate has been at this level since June. FocusEconomics reported that BI also paused in August, when it named rupiah stability as its top priority.
Why rates were held
Bisnis.com lists four reasons. They are keeping the rupiah stable under external pressure, inflation within target, supporting growth and heavy uncertainty in global markets.
The outside environment remains tough. The US Fed funds rate sits at 3.75% to 4.00%, US Treasury yields are elevated, and Middle East escalation plus portfolio outflows keep weighing on the rupiah.
Inflation is picking up
Annual inflation in Indonesia reached 3.19% in August 2026, up from 2.88% in July. Core inflation, which strips out volatile items, was 2.92%. Volatile food prices rose 4.06%.
The government and BI target inflation of 2.5% plus or minus 1 percentage point for 2026. August is still inside that band, though closer to its upper edge.
According to the report, the outlook for Indonesia's 2026 GDP growth remains between 4.9% and 5.7%.
How the rate reached 5.75%
The BI-Rate anchors what banks charge and pay on rupiah loans and deposits. In June 2026, as the rupiah slid, BI raised it twice, on 9 and 18 June, by 25 basis points each time.
In August, FocusEconomics reported that most economists it surveyed saw room for another hike before year end. That is an analyst view, not a central bank decision. BI's next moves will depend on the rupiah and inflation.