Bank Indonesia decided to raise its benchmark BI Rate by 25 basis points to 5.75 percent during the June 2026 Board of Governors meeting.
The decision was made on 17-18 June 2026 and announced by BI Governor Perry Warjiyo in an online press conference on 18 June 2026. In addition to the BI Rate, the Deposit Facility rate rose 25 bps to 4.75 percent and the Lending Facility rate rose 25 bps to 6.50 percent.
The move marks a cumulative increase of 100 bps over the past month. Its aim is to strengthen the stability of the Rupiah exchange rate amid high global uncertainty.
Perry Warjiyo stated the increase is also pre-emptive to keep inflation in 2026 and 2027 within the 2.5 plus or minus 1 percent target range. Meanwhile, macroprudential and payment system policies remain directed at supporting economic growth.