Indonesia interest rate held at 5.75% in October 2026
Bank Indonesia held its policy rate at 5.75% and extended 100% mortgage financing through 2027, while lifting the deposit facility rate to 5.00%.
The facts
- 5.75% is the BI-Rate after the Board of Governors Meeting of 20th-21st October 2026, with the Lending Facility left at 6.50%.
- The Deposit Facility was raised to 5.00%, leaving only 75 basis points between it and the policy rate.
- 100% LTV/FTV financing for all property types, originally scheduled to expire on 31st December 2026, now runs from 1st January 2027 to 31st December 2027.
- Banks must meet set Non-Performing Loan criteria to offer that ratio, which covers landed houses, apartments and shophouses.
- The rupiah stood at Rp17,985 per US dollar on 20th October 2026, 0.61% weaker than at the end of September.
- CPI inflation reached 3.28% in September 2026, up from 3.19%, while bank lending grew 13.26% year on year.
What it means for your money
- A 2027 purchase can still be financed with no deposit. The 5.75% hold means the monthly payment does not fall.
- Owners already letting Indonesian property keep a rent base that Glopra puts at 5.87 USD per square metre a month against a national average price of 1,864 USD per square metre, and the rupiah's 0.61% slide since end-September trims both figures in dollar terms.
- Banks now pay 5.00% on parked funds instead of less, so mortgage quotes can drift upwards even with the policy rate standing still.
What to watch
- 31st December 2027 is the new expiry of the 100% ratio; the previous deadline was 31st December 2026.
- The next Board of Governors Meeting shows whether the 5.00% Deposit Facility was a single step or the start of a narrower corridor.
- Credit growth ran at 13.26% in September against Bank Indonesia's 8-12% projection for 2026, and those two figures are the published reference points for the next decision.
Sources: Bank Indonesia https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/sp_2823326.aspx