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

Author

Listed:
  • 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))

  • Mervin Goklas Hamonangan

  • Hardy Salim

  • Alif Ihsan A Fahta

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

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.

Suggested Citation

  • Jahen F. Rezki & Teuku Riefky & Faradina Alifia Maizar & Difa Fitriani & Mervin Goklas Hamonangan & Hardy Salim & Alif Ihsan A Fahta, 2025. "Macroeconomic Analysis Series: BI Board of Governors Meeting, December 2025," LPEM FEBUI BI Board of Governor Meeting Brief 202512, LPEM, Faculty of Economics and Business, University of Indonesia, revised Dec 2025.
    • Handle: RePEc:lpe:gomeet:202512
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    File URL: https://lpem.org/repec/lpe/queouts/BBG202512.pdf
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