Bank Indonesia (BI) has decided to raise the benchmark interest rate or BI-Rate by 25 bps to 5.75 percent.
In addition, BI also raised the deposit facility interest rate and the lending facility interest rate by 25 bps to 4.75 percent and 6.50 percent, respectively.
BI Governor Perry Warjiyo said BI decided to increase the BI-Rate or reference interest rate by 5.75 percent.
"The Bank Indonesia Board of Governors (RDG) meeting on June 17 and 18, 2026 decided to increase the BI-Rate by 25 basis points to 5.75 percent, the deposit facility interest rate increased by 25 bps to 4.75 percent and the lending facility interest rate increased by 25 bps to 6.50 percent," he said in a press conference, Thursday, June 18.
According to Perry, this increase is a follow-up step to further strengthen the stabilization of the rupiah exchange rate in the midst of high global uncertainty and 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.
Meanwhile, he added that macroprudential policies and payment system policies are still directed to also encourage growth (pro-growth).
Perry said that loose macroprudential policies continued to be strengthened to encourage economic growth through increased credit/financing to the real sector while maintaining financial system stability.
He added that the policy of the payment system is still directed to support economic activities 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 explained.
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