BI Rate Rises Again to 5.75 Percent to Stabilize the Rupiah and Control Inflation

RRI.CO.ID, Jakarta - Bank Indonesia (BI) raised its benchmark interest rate (BI-Rate) by 25 basis points (bps) to 5.75 percent. The Deposit Facility and Lending Facility rates also rose by 25 bps to 4.75 percent and 6.50 percent, respectively.

The decision was made at the BI Board of Governors’ Meeting (RDG) on June 17–18, 2026. BI’s Communications Department Executive Director Ramdan Denny Prakoso said the increase is a follow-up measure to further strengthen the rupiah’s exchange rate amid persistently high global uncertainty.

“This move is also a preemptive measure to keep inflation in 2026 and 2027 within the government’s target range of 2.5 ± 1 percent,” Denny said in Jakarta on Thursday, June 18, as quoted on BI’s official website.

He added that macroprudential and payment system policies remain geared toward supporting economic growth. Accommodative macroprudential measures continue to be reinforced to boost credit and financing to the real sector while maintaining financial system stability.

Payment system policies are directed at expanding digital payment acceptance, strengthening industry structure, and improving infrastructure reliability and resilience.

BI also continues to strengthen policy coordination with the government -- including monetary and fiscal coordination -- to mitigate the impact of global uncertainty stemming from the war in the Middle East.

Denny emphasized that coordination with the Financial System Stability Committee (FSSC) has also been reinforced to help maintain financial stability and promote financing for the government’s Asta Cita program.

Earlier, BI unexpectedly raised the BI-Rate by 25 bps to 5.5 percent at its weekly RDG on Tuesday, June 9. “This increase is a further measure to strengthen rupiah stabilization, particularly in light of high global volatility caused by the war in the Middle East,” BI Governor Perry Warjiyo said.

He added that the move also serves as a preemptive measure to keep inflation in check for 2026 and 2027, ensuring it remains within the government’s target range. “The policy of raising interest rates again is also aimed at increasing returns, as an incentive to attract foreign portfolio investment inflows into Indonesia,” Perry said. ***