In a strategic move aimed at boosting economic activity, Indonesia's central bank has reduced its lending facility rate to 5.50% as of September 2025. This decision marks a 0.25% decrease from the previous rate of 5.75%, which had been in effect since August 2025. The adjustment reflects ongoing efforts by the country's financial authorities to support economic expansion amidst global uncertainties.
This monetary policy shift comes at a time when the global economy is navigating varied challenges, and Indonesian policymakers are clearly focused on stimulating domestic investment and growth. By lowering the lending facility rate, the central bank aims to make borrowing more attractive to businesses and consumers, thereby fostering greater economic dynamism.
The updated lending rate, which was officially announced on 17 September 2025, is expected to have a significant impact on the lending environment, encouraging financial institutions to offer more competitive loan terms. Observers will be watching closely to see how the decision influences economic indicators in the coming months. The reduction in the lending facility rate is yet another testament to Indonesia's proactive approach in maintaining economic stability and growth.
