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Indonesia central bank cuts benchmark rate, welcomes US tariff deal
INDONESIA, JUL 16 – Bank Indonesia cut rates for the fourth time since last September amid slowing demand and welcomed a US tariff reduction from 32% to 19% that supports exports and growth.
- On July 16, 2025, Indonesia's central bank lowered its main short-term policy rate by 0.25 percentage points, bringing it down to 5.25 percent.
- The rate cut followed a newly announced US-Indonesia trade deal reducing proposed tariffs from 32 percent to 19 percent, finalized after talks between Presidents Trump and Prabowo Subianto.
- The agreement sees Indonesia committing to acquire $15 billion worth of American energy products, $4.5 billion in agricultural goods from the US, and 50 Boeing airplanes, which is expected to boost US exports and contribute to economic stability.
- Governor Perry Warjiyo emphasized supporting economic growth and noted room for further rate cuts, while analysts described the tariff deal as a positive catalyst amid global uncertainties.
- The rate cut and trade pact together aim to bolster Indonesia's export outlook and broader economic prospects, maintaining the GDP forecast at 4.6 to 5.4 percent for 2025.
16 Articles
16 Articles
Trump announces trade deal with Indonesia
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Indonesia central bank cuts benchmark rate, welcomes US tariff deal
JAKARTA: Indonesia's central bank cut rates on Wednesday (Jul 16) for the fourth time since September and said a revised tariff deal with the United States was positive for Southeast Asia's biggest economy amid weakening global trade and slowing domestic demand. Bank Indonesia (BI) cut the benchmark 7-day
Financial markets received U.S. President Donald Trump's tariff deal with Indonesia with little fanfare on Wednesday, suggesting that the roughly 20% rate, previously seen as punitive, is now considered workable. Asian stocks and other assets were mixed after Trump announced 19% tariffs on Indonesian goods. Stocks in the Southeast Asian nation rose on optimism that the new duties were at least lower than the 32% the president had initially threa…
Indonesia Cuts Interest Rates to Boost Growth
Indonesia’s central bank, Bank Indonesia, announced its third interest rate cut this year on Wednesday, lowering its key seven-day reverse purchase rate by 25 basis points to 5.25 per cent. Its two other main rates were similarly reduced. This move aims to stimulate growth in Southeast Asia’s largest economy, with Governor Perry Warjiyo indicating that further cuts remain possible depending on economic conditions. Warjiyo stated that the decisio…
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