BI Keeps Rate at 5.75 Percent, Expands FX Hedging Incentives

RRI.CO.ID, Jakarta - Bank Indonesia (BI), at its Board of Governors’ Meeting (RDG) on September 22–23, 2026, decided to maintain the policy rate (BI Rate) at 5.75 percent. The Deposit Facility and Lending Facility rates were also kept at 4.75 percent and 6.50 percent, respectively.

Executive Director of BI’s Communications Department, Ramdan Denny Prakoso, said the decision is consistent with efforts to stabilize the rupiah amid persistent external pressures.

“This aims to support the achievement of the inflation target of 2.5±1 percent in 2026 and 2027 and to promote sustainable economic growth,” Denny said in a written statement in Jakarta on Wednesday, September 23, as quoted on BI’s official website.

BI is strengthening 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 is also managing the money-market interest-rate structure in line with the BI Rate and pro-market monetary-operations instruments.

BI has increased incentives for banks entering Buy Hedging Swaps to support rupiah stability and liquidity. The premium, previously 12.5 percent for all tenors, has been raised to 15 percent for a 3-month tenor, 20 percent for a 6-month tenor, and 25 percent for a 12-month tenor.

Incentives for Hedging DNDF transactions have also been expanded. Premiums were lowered to 25 percent for 6‑month tenors and 30 percent for 12‑month tenors, covering portfolio inflows, banks’ foreign loans, and foreign direct investment.

BI continues the Local Currency Transaction (LCT) incentive through an additional 10 percent premium on Buy Hedging Swaps and a 10 percent reduction in the premium for Sell Hedging DNDFs.

In the credit sector, BI is preparing to strengthen the Macroprudential Inclusive Financing Ratio (RPIM), effective October 1. The Indonesian Intermediation Acceleration Program (PINISI) will also continue in collaboration with the government to boost credit and financing disbursement.

BI is further accelerating digital transactions through the Indonesia Digital Financial Economy Festival and the Indonesia Fintech Summit and Expo (FEKDI and IFSE) 2026, scheduled for September 24–26. The agenda includes the expansion of cross‑border QRIS, the Indonesia Travel Pack, and the addition of Singapore as a new LCT partner in August.

BI continues to strengthen policy coordination with the government, the Financial System Stability Committee (CFSS), and other stakeholders to maintain economic stability and support sustainable economic growth. ***