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Bank Indonesia Cuts Interest Rate, Zero DP Requirements for Property & Vehicles


At its latest monetary policy meeting, which ended on 18 February 2021, the central bank of Indonesia (Bank Indonesia) decided to cut its benchmark interest rate (BI 7-Day Reverse Repo Rate), again, by 25 basis points (bps) to 3.50 percent, touching a historically low level.
By doing so, Bank Indonesia reconfirmed its accommodative policy stance. However, it is also a clear signal that the negative impact of the COVID-19 crisis on the Indonesian economy is far from over, despite several ministers (including Coordinating Minister of Economic Affairs Airlangga Hartarto) expecting to see the return of positive economic growth, on an annual basis, in the first quarter of 2021. ....

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