BI Holds Benchmark Rate at 5.75 Percent Amid Rupiah Pressure, Global Uncertainty

RRI.CO.ID, Jakarta - Bank Indonesia (BI) has maintained its benchmark policy rate (BI Rate) at 5.75 percent amid continued pressure on the rupiah and persistent global uncertainty.

At its Board of Governors’ Meeting (RDG) held on August 18–19, 2026, BI also kept the Deposit Facility rate at 4.75 percent and the Lending Facility rate at 6.50 percent.

“This decision is consistent with efforts to strengthen rupiah stability against heightened global volatility caused by the war in the Middle East, maintain the inflation target of 2.5±1 percent for 2026 and 2027, and support sustainable economic growth,” Acting BI Governor Destry Damayanti said during a press conference in Jakarta on Wednesday, August 19, as quoted on BI’s official website.

To stabilize the rupiah, BI will intensify foreign-exchange interventions through Non-Deliverable Forward (NDF) transactions in overseas markets, as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market.

The central bank will also manage the money‑market interest‑rate structure and ensure sufficient liquidity in the banking sector.

BI has expanded the scope of underlying foreign‑funding transactions eligible for a 12.5 percent reduction in hedging swap premiums. Previously limited to portfolio inflows, the incentive now includes foreign bank loans and foreign direct investment (FDI).

The policy will take effect in the second week of September 2026 for foreign loans and FDI inflows received on or after July 1, 2026. Eligible transactions have a maximum tenor of 12 months, contract periods of up to three years, and may be extended according to the remaining hedging term.

In the macroprudential sector, BI will implement the Macroprudential Liquidity Incentive Policy for Money Market Deepening (KLM PPU) starting September 1, 2026. The policy aims to maintain adequate liquidity, encourage redistribution, and strengthen credit distribution to priority sectors.

BI is also preparing to implement the Macroprudential Inclusive Financing Ratio Policy (RPIM) starting October 1, 2026, to increase bank financing for inclusive and sustainable sectors.

In the payment‑system sector, BI is advancing digitalization through the rollout of the Indonesian Credit Card (KKI), launched on August 17. BI is also preparing to expand the 0 percent QRIS Merchant Discount Rate (MDR) for transactions up to Rp100,000, effective October 1, 2026.

BI will host the Indonesia Digital Financial Economy Festival and the Indonesia Fintech Summit & Expo 2026 on September 24–26.

These initiatives will be reinforced through coordination with the government, the Committee for Financial System Stability (CFSS), and other stakeholders to maintain stability while supporting economic growth. ***