Executive Summary

Key insights and market outlook

Bank Indonesia (BI) maintained its BI Rate at 4.75% in November 2025, following two consecutive months of holding the rate after a 150 basis point cut since September 2024 ¹

. BI Governor Perry Warjiyo indicated that while the central bank is prioritizing Rupiah stability amid global uncertainties, there remains room for further rate cuts if inflation remains controlled and economic growth needs support ³.

Full Analysis

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Deep Dive Analysis

BI Maintains Monetary Policy Stance Amid Global Uncertainty

Rate Decision and Forward Guidance

Bank Indonesia's decision to maintain the BI Rate at 4.75% in November 2025 reflects its cautious approach to monetary policy amid heightened global uncertainties ¹

³. The central bank has kept the rate unchanged for two consecutive months following a significant 150 basis point reduction since September 2024. BI Governor Perry Warjiyo emphasized that while the current focus is on maintaining Rupiah stability, the central bank still sees potential for further monetary easing if economic conditions warrant it ³.

Economic Rationale and Market Implications

The decision is driven by several factors including inflation outlook and economic growth considerations. BI projects that inflation will remain within the target range of 2.5±1% for 2025 and 2026, providing room for potential rate cuts ³

. Economists from various institutions have varying views on the likelihood of future rate reductions, with some citing the importance of the Federal Reserve's policy direction ¹.

Currency and Market Dynamics

The Rupiah has shown mixed performance against the US dollar, with some fluctuations observed following the BI rate decision ²

⁴. The currency market remains sensitive to both domestic monetary policy and global economic developments, particularly the US dollar's movement against other major currencies.

References