Bank Indonesia raises BI-Rate 25 bps to 5.75 percent
The benchmark rate has risen 100 bps in four weeks as Bank Indonesia seeks to draw capital inflows and curb pressure on the rupiah.
Bank Indonesia raised the BI-Rate by 25 basis points to 5.75 percent at its June 2026 Board of Governors meeting, the highest level since May 2025. BI also lifted the deposit facility rate to 4.75 percent and the lending facility rate to 6.50 percent. The increase came a week after an off-schedule emergency move, bringing total tightening in three decisions over four weeks to 100 basis points. The step was taken to attract fresh capital inflows, stop selling pressure on domestic assets and stabilize the rupiah, which had touched a record low. After the decision, the rupiah closed up 0.17 percent at Rp17,700 per U.S. dollar in Thursday trading.