headline

BI Rate Remains At 5.75%, Entrepreneurs: Can Stabilize Industry And Market

The Indonesian Footwear Association (Aprisindo) views Bank Indonesia's (BI) decision to maintain the benchmark interest rate, aka the BI Rate, at 5.75% as a step to stabilize the industry and market. Based on the Board of Governors' Meeting (RDG) for the period 22-23 April 2025, this interest rate decision is consistent with efforts to keep inflation estimates under control within the target of 2.5±1%. Aprisindo General Chair Eddy Widjanarko assessed that the fixed BI Rate has a positive impact on maintaining industrial stability. "The BI Rate of 5.75% has a positive impact because it will maintain industrial and market stability," Eddy told Bisnis, Wednesday (23/4/2025). 

According to him, the benchmark interest rate remaining at 5.75% does not have much impact on the industry. Even so, Eddy assessed that this decision was taken to maintain economic stability amidst the United States (US) tariff war. "I don't think this has any impact, the industry is running as it is. If [BI Rate] is at 5.75%, I think maybe this is an effort to make the situation a little more conducive amidst the export market problem which is currently volatile due to the tariff war," he said. On the other hand, Eddy said that the BI Rate reduction was actually the desire of all parties, including business actors. However, he continued, the Indonesian central bank would be safer if it maintained interest rates. "I think if [BI Rate] was lowered, it would be even better, that's everyone's hope. However, from America it seems to be maintaining the bank rate and maybe Indonesia is safer maintaining the same," he said. Previously, the Bank Indonesia Board of Governors Meeting (RDG) on April 22-23, 2025 decided to maintain the BI-Rate at 5.75%, the Deposit Facility interest rate at 5.00%, and the Lending Facility interest rate at 6.50%. BI Governor Perry Warjiyo said that this decision is consistent with efforts to keep the 2025 and 2026 inflation forecasts under control within the target of 2.5±1%. "Maintaining the stability of the rupiah exchange rate in accordance with fundamentals amid increasing global uncertainty, and to support economic growth," Perry said in a press conference at the BI RDG, Wednesday (23/4/2025). However, Perry said that going forward, BI will continue to monitor the room for further BI Rate reductions by considering the stability of the rupiah exchange rate, inflation prospects, and encouraging economic growth. Meanwhile, macroprudential policies and payment systems continue to be optimized to support sustainable economic growth. Meanwhile, the Macroprudential Liquidity (KLM) incentive policy has been strengthened on April 1, 2025 to further encourage bank credit/financing to priority sectors that support growth and job creation. In addition, payment system policies are also directed to support economic growth, especially the trade and MSME sectors. "The reliability of the infrastructure and structure of the payment system industry will continue to be strengthened, as well as the acceptance of digital payments will continue to be expanded," he concluded. 

Tag: Aprisindo BI Rate Perry Warjiyo RDG