17.03.202607:51:19UTC+00Indonesia Holds Rates Steady as Expected

Bank Indonesia left its benchmark interest rate unchanged at 4.75% at its March 2026 policy meeting, in line with market expectations. The move is intended to support Rupiah stability while keeping inflation within the central bank’s 2026–2027 target range of 2.5% ± 1%.

The Rupiah weakened to Rp16,985 per US dollar on March 16, 2026, a 1.29% depreciation from end-February, as rising geopolitical tensions in the Middle East spurred capital outflows from emerging markets.

On the price front, annual inflation climbed to 4.76% in February 2026 from 3.55% in January, its highest level since March 2023. Despite mounting global headwinds, the central bank maintained its 2026 economic growth forecast at 4.9%–5.7%.

Indonesia’s GDP expanded 5.39% year-on-year in Q4 2025, up from 5.04% in the previous quarter and marking the fastest pace of growth since Q3 2022. Bank Indonesia also kept its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.