Bank Indonesia keeps the BI-Rate at 5.75 per cent and cuts bank reserve requirements to free up liquidity

21 October 2026

The Board of Governors of Bank Indonesia has held the BI-Rate, the central bank's policy rate, at 5.75 per cent. The Lending Facility rate stays at 6.50 per cent while the Deposit Facility rate was raised to 5.00 per cent. To loosen liquidity, the reserve requirement for conventional banks will be cut from 9 per cent to 7 per cent in two steps of one percentage point each, and the requirement for sharia banks from 7.5 per cent to 5.5 per cent on the same schedule. The Macroprudential Liquidity Incentive falls from 6 per cent to 5 per cent. The rupiah stood at Rp17,985 to the US dollar on the eve of the decision. A 100 per cent loan-to-value ratio for property loans and a zero down payment for new vehicle loans were both extended through 2027.