Macroeconomic Analysis Series: BI Board of Governors Meeting, December 2025

Jahen F. Rezki (), Teuku Riefky (), Faradina Alifia Maizar (), Difa Fitriani (), Mervin Goklas Hamonangan (), Hardy Salim () and Alif Ihsan A Fahta ()
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Jahen F. Rezki: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)
Teuku Riefky: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)
Faradina Alifia Maizar: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)
Difa Fitriani: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)
Alif Ihsan A Fahta: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)

No 202512, LPEM FEBUI BI Board of Governor Meeting Brief from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: Inflation softened to 2.72% (y.o.y) in November 2025 from 2.86% (y.o.y) in the previous month. However, the latest inflation rate remained in the upper range of Bank Indonesia’s 1.5%-3.5% target bound. In addition, the upcoming end-of-year holiday season might exert additional inflationary pressure at the end of 2025. On the external front, the combination of FFR cut by the Fed and Bank Indonesia's decision to keep its policy rate unchanged has spurred foreign capital flows to Indonesia. As a consequence, Rupiah has appreciated by 0.11% (m.t.m) in the past 30 days. Despite the recent trend of strengthening, Rupiah is still relatively volatile. Considering these, Bank Indonesia should keep its policy rate at 4.75% in the last Board of Governors Meeting of 2025 while keep being vigilant to exert any necessary effort in stabilizing Rupiah.

Keywords: gdp; —; economic; —; economic; outlook; —; inflation; —; macroeconomics; —; interest; rate (search for similar items in EconPapers)
Date: 2025-12, Revised 2025-12
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