Bank Indonesia (BI) has decided to raise the benchmark interest rate or BI-Rate by 25 bps to 5.50 percent.
In addition, BI also raised the deposit facility interest rate and the lending facility interest rate by 25 bps to 4.50 percent and 6.25 percent, respectively.
"The Bank Indonesia Weekly Board of Governors (RDG) meeting on today, June 9, 2026, decided to raise the BI-Rate by 25 bps to 5.50 percent, the Deposit Facility interest rate by 25 bps to 4.50 percent, and the Lending Facility interest rate by 25 bps to 6.25 percent," said Governor Perry Warjiyo. in a statement, Tuesday, June 9
Perry said this increase was 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.
He added that this increase was also 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 policy is also aimed at increasing the yield for the attractiveness of foreign portfolio investment inflows into Indonesia.
"In accordance with the law and the practice that has been running so far, Bank Indonesia holds a Weekly RDG every Tuesday to evaluate the implementation of the mix of policies set out in the Monthly RDG," he explained.
According to him, in the evaluation since the Monthly RDG on May 19-20, 2026, the rupiah exchange rate showed a weaker development than expected.
He added that the weakening was also caused by the continued global turmoil and high domestic foreign exchange demand, the weakening was also driven by the outflow of foreign portfolio investment from Indonesia.
"In connection with this, Bank Indonesia considers it necessary to take further steps to strengthen the stabilization of the Rupiah exchange rate by increasing returns and a number of other incentives to encourage the entry of foreign investment flows," he explained.
Perry also added that the stabilization of the rupiah exchange rate was also taken to ensure that the external resilience of the Indonesian economy was maintained and the inflation targets for 2026 and 2027 were achieved.
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