Bank Indonesia (BI) has decided to raise the benchmark interest rate or BI-Rate by 50 bps to 5.25 percent.
In addition, BI also raised the deposit facility interest rate and the lending facility interest rate by 50 bps to 4.25 percent and 6.00 percent, respectively.
BI Governor Perry Warjiyo said BI decided to increase the BI-Rate or reference interest rate by 50 bps to 5.25 percent.
"The Bank Indonesia Board of Governors (RDG) meeting on May 19-20, 2026 decided to raise the BI-Rate by 50 bps to 5.25 percent, the Deposit Facility interest rate by 50 bps to 4.25 percent, and the Lending Facility interest rate by 50 bps to 6.00 percent," he said in a press conference, Wednesday, May 20.
According to Perry, this increase is a follow-up step to strengthen the stabilization of the Rupiah exchange rate from the impact of high global turmoil due to the war in the Middle East as well as a pre-emptive step to keep inflation in 2026 and 2027 within the target range of 2.5 percent plus minus 1 percent set by the Government.
According to him, this decision is in line with the focus of monetary policy on stability (pro-stability) to strengthen the external resilience of the Indonesian economy from the impact of global turmoil.
Meanwhile, he added that macroprudential policies and payment system policies are still directed to contribute to growth (pro-growth).
"The loose macroprudential policy continues to be strengthened to encourage economic growth through increased credit/financing to the real sector while maintaining financial system stability," he explained.
Perry also added that the payment system policy continues to be directed to support digital economic activities and inclusive finance through the expansion of digital payment acceptance, strengthening the structure of the payment system industry, and increasing the reliability and resilience of the payment system infrastructure.
"The direction of the mix of monetary, macroprudential, and payment system policies in strengthening stability and also contributing to sustainable economic growth," he said.
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