BI keeps policy rate at 5.75% as global pressure lingers
BI logged US$1.8 billion in foreign portfolio inflows in Q3 through Aug. 14, led by SBN, SRBI and global bonds.
Bank Indonesia kept its benchmark interest rate at 5.75% while prioritizing stability as global pressure has yet to ease. In the August 2026 RDG results, Acting Governor Destry Damayanti said the world economic outlook remains weak, with global growth at around 3% and inflation at 4.5% in 2026. Intensifying fighting in the Middle East is seen pushing up oil and commodity prices, while expectations of a Fed Funds Rate increase in Q4 and the U.S. budget deficit are keeping U.S. Treasury yields elevated. At home, BI said Indonesia's economy grew 5.29% in Q2 2026, supported by fiscal stimulus, including government spending and the Makan Bergizi Gratis program. BI also reported net foreign portfolio inflows of US$1.8 billion through Aug. 14, 2026.