Indonesia Interest Rate  2005-2016 | Data | Chart | Calendar | Forecast

Indonesia's central bank unexpectedly cut its benchmark interest rate by 25 bps to 6.5 percent at its June 16th 2016 meeting, mentioning benign inflation, a relatively stable currency and a narrowing current account deficit. It is the fourth cut so far this year, as central bank tries to spur economic growth. Policymakers also slashed its overnight deposit facility rate and lending facility rate by 25 basis points to 4.5 percent and 7 percent respectively. Interest Rate in Indonesia averaged 7.66 percent from 2005 until 2016, reaching an all time high of 12.75 percent in December of 2005 and a record low of 5.75 percent in February of 2012. Interest Rate in Indonesia is reported by the Bank Indonesia.

Indonesia Interest Rate
Receive the next reported value for Indonesia Interest Rate in you Inbox



We will not not share your email with third parties and you can unsubscribe at any time.
Please Paste this Code in your Website

Actual Previous Highest Lowest Dates Unit Frequency
6.50 6.75 12.75 5.75 2005 - 2016 percent Daily
In Indonesia the interest rate decisions are taken by The Central Bank of Republic of Indonesia. The official interest rate is the Discount rate. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis. This page provides - Indonesia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Indonesia Interest Rate - actual data, historical chart and calendar of releases - was last updated on June of 2016.


Calendar GMT Reference Actual Previous Consensus Forecast (i)
2016-04-21 08:25 AM Interest Rate Decision 6.75% 6.75% 6.75% 6.75%
2016-05-19 10:20 AM Interest Rate Decision 6.75% 6.75% 6.75% 6.75%
2016-06-16 10:00 AM Interest Rate Decision 6.5% 6.75% 6.75% 6.75%
2016-07-21 09:00 AM Interest Rate Decision 6.5% 6.5%
2016-08-19 09:00 AM Interest Rate Decision 6.5%
2016-09-22 09:00 AM Interest Rate Decision 6.5%

Indonesia Lowers Key Rate to 6.5%


Indonesia's central bank unexpectedly cut its benchmark interest rate by 25 bps to 6.5 percent at its June 16th 2016 meeting, mentioning benign inflation, a relatively stable currency and a narrowing current account deficit. It is the fourth cut so far this year, as central bank tries to spur economic growth. Policymakers also slashed its overnight deposit facility rate and lending facility rate by 25 basis points to 4.5 percent and 7 percent respectively.

Excerpt from the statement by the Bank Indonesia:

Bank Indonesia will ease macroprudential policy while maintaining compliance to prudential principles[1] by: (i) relaxing the loan-to-value ratio (LTV) and financing-to-value ratio (FTV) on housing loans/financing as attached; and (ii) relaxing partially prepaid loans/financing pursuant to regulations concerning phased loan/financing in line with the construction progress of the associated property as a second loan/financing facility. Furthermore, to boost banking credit Bank Indonesia will also raise the floor on the Reserve Requirement - Loan to Financing Ratio (RR-LFR) from 78% to 80%, with the ceiling maintained at 92%. The new macroprudential policies will take effect in August 2016.

Domestic economic growth was observed to improve in the second quarter of 2016, albeit not as strong as previously predicted. Household consumption was noted to increase as retail sales surged during the approach the Eid-ul-Fitr and annual bonuses were disbursed. Despite a further surge in government capital spending, investment, especially non-construction investment, showed no significant signs of growth. Concerning the external sector, limited export growth was recorded with exports of several commodities beginning to pick up. Bank Indonesia perceives the need for additional measures to stimulate domestic demand and, therefore, strengthen economic growth momentum. Consequently, domestic economic growth is projected to be in the range of 5.0-5.4% (yoy) in 2016.

Indonesia’s trade balance recorded a surplus in May 2016, primarily supported by a non-oil and gas trade surplus. The trade surplus stood at USD0.38 billion, lower than USD0.66 billion the month earlier. A seasonal increase in oil imports during the run up to Ramadan and Eid-ul-Fitr contributed to the lower trade surplus. The trade surplus was still in line with the projected current account deficit in the second quarter of 2016. 

The rupiah strengthened in June 2016, after depreciating the month earlier as risk accumulated on global financial markets due to the expected FFR hike. On average, the Rupiah depreciated 1.95% (mtm) to a level of Rp13,434 per USD in May 2016. Depreciatory pressures, which were also felt in other countries, were triggered by global risks associated with the proposed FFR hike. The Rupiah rebounded at the beginning of June 2016, however, as foreign capital flowed back into Indonesia after weaker-than-expected labour data was announced in the United States. The Federal Reserve’s decision to postpone the FFR hike at the FOMC on 15th June 2016 should help stabilise the Rupiah. Looking forward, Bank Indonesia will continue to maintain exchange rate stability in line with the rupiah’s fundamental value.

Financial system was stable, with a resilient banking system. In April 2016, the Capital Adequacy Ratio (CAR) stood at 21.7%, while the ratio of non-performing loans (NPL) was recorded at 2.9% (gross) and 1.5% (net). Looser monetary policy was transmitted through the interest rate channel, as reflected by lower deposit and lending rates in the banking industry. In contrast, monetary policy transmission through the credit channel was not optimal. The Federal Reserve’s decision to postpone the FFR hike at the FOMC on 15th June 2016 should help stabilise the rupiah. Credit growth continued to decelerate from 8.7% (yoy) in March 2016 to 8.0% (yoy) in April 2016. Similarly, deposit growth slowed to 6.2% (yoy) in April 2016 from 6.4% (yoy) the month earlier. Bank Indonesia considers the need for looser policy to catalyse credit growth on both the supply and demand sides in order to bolster future economic growth.

Bank Indonesia | Mojdeh Kazemi | mojdeh@tradingeconomics.com
6/16/2016 3:20:19 PM

Indonesia Money Last Previous Highest Lowest Unit
Interest Rate 6.50 6.75 12.75 5.75 percent [+]
Interbank Rate 7.06 7.05 57.79 4.19 percent [+]
Money Supply M0 435321.50 420139.56 469379.46 2983.00 IDR Billion [+]
Money Supply M1 1089237.90 1064664.00 1089237.90 317.90 IDR Billion [+]
Money Supply M2 4580800.00 4561074.00 4580800.00 5156.00 IDR Billion [+]
Foreign Exchange Reserves 103600.00 107711.00 124637.75 27404.30 USD Million [+]
Loans to Private Sector 3639001.00 3625729.00 3681060.00 286724.00 IDR Billion [+]
Deposit Interest Rate 8.30 6.26 39.07 5.95 percent [+]
Cash Reserve Ratio 6.50 7.50 8.00 5.00 percent [+]
Lending Rate 7.00 7.00 15.75 6.75 percent [+]
Loan Growth 8.00 8.70 90.50 -59.90 percent [+]




Last
Argentina 34.45 May/16
Malawi 27.00 May/16
Ghana 26.00 May/16
Gambia 23.00 May/16
Belarus 22.00 May/16
Venezuela 21.07 Apr/16
Iran 21.00 May/15
Haiti 20.00 May/16
Ukraine 16.50 Jun/16
Zambia 15.50 May/16
Afghanistan 15.00 May/16
Kazakhstan 15.00 Jun/16
Uganda 15.00 Jun/16
Yemen 15.00 May/16
Brazil 14.25 Jun/16
Mozambique 14.25 Jun/16
Angola 14.00 May/16
Liberia 13.55 Mar/16
Moldova 13.00 May/16
Djibouti 12.70 Dec/14
Guinea 12.50 May/16
Sudan 12.40 Dec/15
Suriname 12.28 Dec/14
Seychelles 12.27 Apr/16
Nigeria 12.00 May/16
Tanzania 12.00 Feb/16
Egypt 11.75 Jun/16
Zimbabwe 11.44 Mar/16
Kenya 10.50 May/16
Mongolia 10.50 May/16
Russia 10.50 Jun/16
Lebanon 10.00 May/16
Myanmar 10.00 May/16
Sao Tome and Principe 10.00 May/16
Burundi 9.82 Dec/15
Sierra Leone 9.50 May/16
Uruguay 9.25 May/16
Mauritania 9.00 May/16
Tajikistan 9.00 May/16
Uzbekistan 9.00 May/16
Ecuador 8.89 May/16
Madagascar 8.30 May/16
Armenia 7.75 May/16
Cape Verde 7.50 May/16
Colombia 7.50 Jun/16
Turkey 7.50 Jun/16
Azerbaijan 7.00 May/16
Georgia 7.00 Jun/16
Maldives 7.00 May/16
Namibia 7.00 Jun/16
Nepal 7.00 May/16
South Africa 7.00 May/16
Swaziland 7.00 May/16
Bangladesh 6.75 May/16
India 6.50 Jun/16
Indonesia 6.50 Jun/16
Rwanda 6.50 May/16
Sri Lanka 6.50 Jun/16
Vietnam 6.50 May/16
Lesotho 6.49 Dec/15
Papua New Guinea 6.25 May/16
Bhutan 6.00 May/16
Botswana 6.00 Jun/16
Iraq 6.00 May/16
Kyrgyzstan 6.00 May/16
Honduras 5.75 May/16
Iceland 5.75 Jun/16
Pakistan 5.75 May/16
Paraguay 5.75 Jun/16
Brunei 5.50 May/16
Bosnia and Herzegovina 5.25 Feb/16
Dominican Republic 5.00 May/16
Ethiopia 5.00 May/16
Guyana 5.00 May/16
Jamaica 5.00 May/16
Trinidad and Tobago 4.75 May/16
Bahamas 4.50 Apr/16
Laos 4.50 May/16
Qatar 4.50 May/16
Mauritius 4.40 May/16
China 4.35 May/16
El Salvador 4.33 Apr/16
Peru 4.25 Jun/16
Serbia 4.25 Jun/16
Tunisia 4.25 May/16
Algeria 4.00 May/16
Jordan 3.75 May/16
Mexico 3.75 May/16
Benin 3.50 May/16
Burkina Faso 3.50 May/16
Chile 3.50 Jun/16
Guinea Bissau 3.50 May/16
Ivory Coast 3.50 May/16
Mali 3.50 May/16
Niger 3.50 May/16
Senegal 3.50 May/16
Togo 3.50 May/16
Barbados 3.48 May/16
Macedonia 3.25 Apr/16
Malaysia 3.25 May/16
Guatemala 3.00 May/16
Libya 3.00 May/16
Philippines 3.00 Jun/16
Belize 2.50 Apr/16
Croatia 2.50 May/16
Cameroon 2.45 May/16
Central African Republic 2.45 May/16
Chad 2.45 May/16
Equatorial Guinea 2.45 May/16
Gabon 2.45 May/16
Republic of the Congo 2.45 May/16
Cuba 2.25 May/16
Kuwait 2.25 Apr/16
Morocco 2.25 Jun/16
New Zealand 2.25 Jun/16
Congo 2.00 May/16
Saudi Arabia 2.00 May/16
Bolivia 1.89 Apr/16
Australia 1.75 Jun/16
Costa Rica 1.75 May/16
Romania 1.75 May/16
Poland 1.50 Jun/16
Taiwan 1.50 May/16
Thailand 1.50 Jun/16
Cambodia 1.42 Mar/16
Albania 1.25 May/16
South Korea 1.25 Jun/16
United Arab Emirates 1.25 May/16
Comoros 1.16 Apr/16
Hungary 0.90 Jun/16
Bahrain 0.75 May/16
Hong Kong 0.75 May/16
Macau 0.75 May/16
Canada 0.50 May/16
Fiji 0.50 May/16
Norway 0.50 Jun/16
United Kingdom 0.50 Jun/16
United States 0.50 Jun/16
Panama 0.49 Mar/16
New Caledonia 0.30 May/16
Singapore 0.23 May/16
Israel 0.10 May/16
Oman 0.10 May/16
Czech Republic 0.05 May/16
Austria 0.00 Jun/16
Belgium 0.00 Jun/16
Bulgaria 0.00 Jun/16
Cyprus 0.00 Jun/16
Estonia 0.00 Jun/16
Euro Area 0.00 Jun/16
Finland 0.00 Jun/16
France 0.00 Jun/16
Germany 0.00 Jun/16
Greece 0.00 Jun/16
Ireland 0.00 Jun/16
Italy 0.00 Jun/16
Latvia 0.00 Jun/16
Lithuania 0.00 Jun/16
Luxembourg 0.00 Jun/16
Malta 0.00 Jun/16
Netherlands 0.00 Jun/16
Portugal 0.00 Jun/16
Slovakia 0.00 Jun/16
Slovenia 0.00 Jun/16
Spain 0.00 Jun/16
Japan -0.10 Jun/16
Sweden -0.50 May/16
Denmark -0.65 May/16
Switzerland -0.75 Jun/16