Bank Indonesia will maintain its benchmark interest rate through the end of 2026 as policymakers prioritise currency and price stability, according to the Asian Development Bank in its September 2026 Asian Development Outlook.
Prudent stance persists
The Asian Development Bank economics team noted that the central bank is likely to maintain a prudent interest rate stance throughout the remainder of 2026, keeping monetary policy cautious while other instruments carry the burden of domestic stimulus. The benchmark rate sits at 5.75 percent.
Bank Indonesia’s board of governors held the policy rate at 5.75 percent in September 2026, leaving borrowing costs unchanged for four consecutive months since its June 2026 meeting. The pause reflects four steady months.
Support through macroprudential tools
The policy rate will continue to focus on efforts to maintain price and exchange rate stability, while liquidity and macroprudential measures support domestic activity, the development lender said. Bank Indonesia relies on targeted incentives rather than rate cuts to stimulate business borrowing.
Adequate liquidity and macroprudential incentives are expected to help maintain credit growth, particularly for the investment and priority sectors, according to the report. Credit growth reached 13.65 percent year-on-year in August 2026, accelerating slightly from the 13.58 percent expansion recorded in July 2026.
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Source: Asian Development Bank
