BI Raises Benchmark Rate to 5.25 Percent in May to Stabilize Rupiah

RRI.CO.ID, Jakarta - Bank Indonesia (BI) raised its benchmark interest rate (BI Rate) by 50 basis points in May 2026, following a decision made at the BI Board of Governors’ Meeting (RDG BI) held on May 19–20.

During the meeting, the board assessed domestic and global economic and financial market developments.

“After conducting this assessment, the BI Board of Governors decided to raise the BI Rate by 50 basis points to 5.25 percent,” BI Governor Perry Warjiyo said in a press statement on Wednesday, May 20, 2026.

BI also raised the Deposit Facility and Lending Facility rates by 50 basis points, bringing them to 4.25 percent and 6 percent, respectively.

“This increase is a further step to strengthen the stabilization of the rupiah exchange rate, particularly amid high global volatility caused by the war in the Middle East,” Perry said.

He added that the rate hike is also a pre-emptive measure to keep inflation in 2026 and 2027 within the target range of 2.5±1 percent, in line with government targets.

BI’s decision remains consistent with its pro-stability monetary policy focus, aimed at strengthening Indonesia’s economic resilience against global shocks.

Meanwhile, to support economic growth (pro-growth), BI is implementing macroprudential and payment system policies. At present, BI is applying accommodative macroprudential measures to boost credit expansion in the real sector. (Gusti Panji)