The Board of Governors Meeting of Bank Indonesia (BI) on 18–19 November 2025 decided to maintain the BI Rate at 4.75%, with the Deposit Facility and Lending Facility rates kept at 3.75% and 5.50%, respectively. BI Governor Perry Warjiyo stated that this decision was made to maintain the stability of the rupiah exchange rate and attract foreign portfolio investment, while continuing to strengthen the transmission of monetary and macroprudential policy easing.
– Kontan, 19 November 2025
Government Pushes Rp783 Trillion Spending in Remaining 2025, Focus on Infrastructure & Economic Stimulus
As of 31 October 2025, central government spending had reached Rp1,879.6 trillion, or 70.6% of this year’s outlook, leaving around Rp783.8 trillion to be absorbed in the last two months of the year. Deputy Minister of Finance Suahasil Nazara stated that accelerating spending is crucial to support economic growth, as reflected in the 5.04% growth in Q3, driven by government expenditure.
Ministry/agency (K/L) spending has reached 75.4%, while non-K/L spending is at 66.2%. Goods spending has begun to accelerate, but capital spending has only reached 59.9%, held back by the high baseline of last year’s infrastructure projects and the tendency for disbursements to peak at year-end. Meanwhile, social assistance spending grew 11.1% with 98.6% absorption, considered effective in boosting household consumption. The government ensures it will continue monitoring and accelerating spending until year-end to maintain economic recovery momentum.
– Kontan, 21 November 2025
Government Issues US$2 Billion Global Sukuk
The government issued US$2 billion in Global Sukuk in two tenors: 5-year (US$1.1 billion, 4.5% yield) and 10-year (US$0.9 billion, 5% yield), maturing in December 2030 and 2035. Issued through SBSN Indonesia III under the Wakalah structure, the instruments received a positive response with initial orders reaching US$5.8 billion, reflecting strong global investor confidence.
The sukuk will be listed on SGX and NASDAQ Dubai, and has obtained investment-grade ratings from Moody’s, S&P, and Fitch. Lead managers include Dubai Islamic Bank, J.P. Morgan, and Standard Chartered, with BRI Danareksa and Trimegah acting as co-managers.
– Kontan, 21 November 2025
BI Provides Rp404.6 Trillion in Liquidity Incentives, Largest Allocation to Private Banks
Bank Indonesia (BI) reported that macroprudential liquidity incentives (KLM) reached Rp404.6 trillion as of the first week of November 2025. These incentives aim to boost credit growth in priority sectors such as agriculture, trade, manufacturing, real estate, housing, construction, transportation, tourism, MSMEs, and green sectors.
The largest allocation went to National Private Commercial Banks (Rp179.9 trillion), followed by SOE banks (Rp179.4 trillion), Regional Development Banks (Rp39.3 trillion), and foreign bank branches (Rp6 trillion). Starting 1 December 2025, BI will strengthen the performance-based KLM scheme, with additional incentives estimated to reach Rp18.5 trillion for banks that channel credit to priority sectors and set interest rates aligned with BI’s policy direction.
– Bisnis, 19 November 2025
Credit Growth Slows, BI Projects It Will Fall Below Target
Bank lending growth up to October 2025 slowed to 7.36% YoY, down from 7.7% in the previous month, and drifting further from BI’s target of 8–11%.
BI Governor Perry Warjiyo explained that weak loan demand is caused by a wait-and-see attitude among businesses, the use of internal corporate financing, and still-high interest rates. Although banks’ appetite to lend remains healthy, caution is high especially in consumer and MSME segments. BI will continue strengthening coordination with the government and the Financial System Stability Committee (KSSK) to stimulate lending and lower interest rates.
– Kontan, 19 November 2025
Positive Outlook for Industrial Estate Sector
CBRE Indonesia reported that the industrial estate sector—particularly warehousing and logistics—continues to expand, with occupancy reaching 95% as of September 2025. Growth prospects remain strong for the next eight years, driven by high demand and attractive yields of 7.5%–9%.
Modern warehouse space in Greater Jakarta has reached 3.3 million m², with absorption of 293,000 m², and new supply expected to increase by 520,000 m² by 2027.
The transportation and warehousing sector also grew 8.62% YoY in Q3 2025, the sixth largest contributor to national GDP. This performance is supported by exports, industry, and trade, highlighting the urgency of improving logistic efficiency to strengthen national export competitiveness.
– Bisnis, 18 November 2025
Manufacturing and Logistics Lead Bank Credit Growth
OJK reported results of the Banking Business Orientation Survey (SBPO), which show strong banking optimism for Q4 2025, with the Business Performance Expectation Index (IEK) reaching 78. Bankers expect credit growth to be driven by increasing demand and available expansion pipelines.
Three main economic sectors expected to drive credit growth are:
- Manufacturing (8.64% YoY)
- Mining and quarrying (19.15% YoY)
- Transportation and warehousing (19.32% YoY)
– Bisnis, 22 November 2025
RDMP Balikpapan Ready for Inauguration, Supporting 2026 Energy Self-Sufficiency
The US$7.4 billion Balikpapan Refinery Development Master Plan (RDMP) project is entering the final stage and is planned to be inaugurated by President Prabowo on 17 December 2025. Previously, initial symbolic operation of the main RFCC Complex unit took place on 10 November.
The RDMP is expected to contribute 22–25% of national fuel demand and strengthen energy security, with projections of diesel and aviation fuel self-sufficiency by 2026.
Deputy Minister of Energy and Mineral Resources Yuliot said that the readiness of the main facilities has reached 98–99% and will be fully completed within days. Meanwhile, Pertamina KPI President Director Taufik Aditiyawarman emphasized that the RDMP will produce Euro V–standard fuel as well as petrochemical products such as propylene and ethylene to reduce imports.
– Kontan, 20 November 2025