- BI lowers its policy rate to 5.50% in May 2025 amidst growth and liquidity concerns and USD weakness.
- Controlled depreciation against Asian currencies and stability against USD is ideal for Indonesia, given the need to maintain both trade competitiveness and financial stability.
- BI has lowered secondary reserves ratio (PLM) by 1% as well as increasing cap on banks’ borrowing limit to 35% (RPLN) amidst slowing credit and third-party funds growth.
- Maturity "wall" and policy uncertainty may limit the chance for further tactical rate cuts by BI in the near-term.
