Bank Indonesia Cuts Interest Rate to 5% in August 2025

Monetary

Premium

Erlina Fury Santika 21/08/2025 13:23 WIB

URL has been copied

Memuat...

Bank Indonesia (BI) cut its benchmark interest rate to 5% in August 2025, marking the fourth cut since the end of 2024.

Bank Indonesia's Policy Interest Rate Movement (January 2020-August 2025)

A Small Font
A Medium Font
A Bigger Font

You are accessing content Single Data Premium.
To continue, please subscribe or buy individually.

Professional

Enjoy premium access with a more affordable price.

Start from

~~Rp300.000~~ 150.000/month

Access more premium content and exclusive features for customers.

Start from

50.000/month

Hanya Rp833 per artikel

More details »

Buy Retail

Read the article immediately “Bank Indonesia Cuts Interest Rate to 5% in August 2025”.

Rp7.500

We accept the following payments:

Some payment methods are still in the process of being activated.

Bank Indonesia's Policy Interest Rate Movement (January 2020-August 2025)

Download

Source

A Small Font
A Medium Font
A Bigger Font

Bank Indonesia (BI) cut its benchmark interest rate by 25 basis points (bps) to 5% in August 2025. This decision was based on the BI Board of Governors (RDG) meeting held on August 19-20, 2025.

A 25 bps reduction was also applied to the deposit facility rate, bringing it to 4.25%, and the lending facility rate, bringing it to 5.75%.

This decision marks the fourth rate cut since the beginning of 2025. These cuts occurred in January 2025, May 2025, July 2025, and August 2025, each involving a 25 bps reduction.

“The direction of the BI-Rate interest rate cuts is always primarily based on the two-year-ahead inflation projection, especially core inflation,” said BI Governor Perry Warjiyo in an online press conference reported by Katadata on Wednesday, August 20, 2025.

He believes that core inflation in 2025 and 2026 will remain low, at around 2.5%. According to him, this condition provides room for Bank Indonesia to continue lowering interest rates.

In addition to inflation, BI also considered economic growth prospects. Perry stated that Indonesia's economic growth is expected to be above the midpoint of the 4.6%-5.4% range.

“This means that the economy's capacity is still greater than demand. Therefore, we have lowered interest rates four times, and we will continue to monitor the room for further interest rate reductions,” he said.

(Read Katadata: BI Cut Interest Rates Since September 2024, Room for Further Reductions Remains Open)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

Related Data

South Sumatra's Air Quality This Morning (5/12) is the Worst in Indonesia

Warning! Mount Ibu Erupts Again This Morning (Friday, December 5, 2025)

Food Consumption Inadequacy Rate for Banjar City Residents Decreased by 5.13% in 2024

Average Length of Schooling for Sukabumi City Residents Increases to 10.39 Years

Warning! Mount Semeru Erupts Again This Morning (Friday, December 5, 2025)

Warning! Mount Ibu Erupts Again Early This Morning (Friday, December 5, 2025)

Latest Data Stories

Population of Male Cattle Suitable for Slaughter, Period 2013-2024 Demographics 05/12/2025, 11:13 WIB

Aluminum Prices Fall to US$2,459 per Ton as of Thursday, May 22, 2025 Market 05/12/2025, 10:58 WIB

Tin Price Falls to US$32,550 per Ton on Thursday, May 22, 2025 Market 05/12/2025, 10:57 WIB

Three-Month Coffee Contract Price - US Coffee C Futures Rise Towards 370.3 Pounds per Pound (Wednesday, May 21, 2025) Market 05/12/2025, 10:48 WIB

Today's Antam Gold Price Drops to Rp. 1.91 Million per Gram Mining 05/12/2025, 10:47 WIB

Nickel Commodity Price for 3-Month Forward Contract This Morning Traded at US$15,505/Ton (Wednesday, May 21, 2025) Market 05/12/2025, 10:31 WIB

Download

Source

Bank Indonesia Cuts Interest Rate to 5% in August 2025

Tags

Related Data

South Sumatra's Air Quality This Morning (5/12) is the Worst in Indonesia

Warning! Mount Ibu Erupts Again This Morning (Friday, December 5, 2025)

Food Consumption Inadequacy Rate for Banjar City Residents Decreased by 5.13% in 2024

Average Length of Schooling for Sukabumi City Residents Increases to 10.39 Years

Warning! Mount Semeru Erupts Again This Morning (Friday, December 5, 2025)

Warning! Mount Ibu Erupts Again Early This Morning (Friday, December 5, 2025)

Latest Data Stories

Popular Data

Bank Indonesia Cuts Interest Rate to 5% in August 2025

Tags

Related Data

South Sumatra's Air Quality This Morning (5/12) is the Worst in Indonesia

Warning! Mount Ibu Erupts Again This Morning (Friday, December 5, 2025)

Food Consumption Inadequacy Rate for Banjar City Residents Decreased by 5.13% in 2024

Average Length of Schooling for Sukabumi City Residents Increases to 10.39 Years

Warning! Mount Semeru Erupts Again This Morning (Friday, December 5, 2025)

Warning! Mount Ibu Erupts Again Early This Morning (Friday, December 5, 2025)

Latest Data Stories

Trending Topics

Popular Data