JAKARTA (Reuters) - Indonesia's central bank has room to loosen monetary policy again as inflation is expected to stand at 3.8 percent to 3.9 percent by the end of 2016, inside its target range, deputy governor Perry Warjiyo said on Tuesday.

"(The next policy easing) is a matter of how much and when," Warjiyo told reporters, adding that Bank Indonesia thinks the Federal Reserve's chance of raising U.S. interest rates later this year is getting smaller.

Bank Indonesia has made four cuts to its benchmark interest rate this year, trimming the key rate down to 6.50 percent.

The bank aims to maintain inflation between 3 percent and 5 percent this year. Annual inflation was 3.33 percent in May.

(Reporting by Hidayat Setiaji; Writing by Gayatri Suroyo; Editing by Clarence Fernandez)