Bank Indonesia (BI) has unexpectedly announced a decision to raise\nits benchmark interest rate (BI rate) by 25 basis points to 5.5 per\ncent. This decision was reached during the weekly Board of Governors\nMeeting on Tuesday (9\/6\/2026).<\/p>\n
\u201cThe Board of Governors decided to raise the BI rate by 25 bps to\n5.50 per cent, the Deposit Facility rate by 25 bps to 4.50 per cent, and\nthe Lending Facility rate by 25 bps to 6.25 per cent,\u201d stated BI\nGovernor Perry Warjiyo in an official statement to journalists on\nTuesday.<\/p>\n
Perry explained that the increase in the BI rate is a follow-up\nmeasure to strengthen the stabilisation of the rupiah exchange rate\nagainst the impact of high global volatility resulting from the war in\nthe Middle East. It also serves as a pre-emptive step to maintain\ninflation for 2026 and 2027 within the government\u2019s target range of\n2.5\u00b11 per cent.<\/p>\n
\u201cThis policy is also aimed at increasing yields to enhance the\nattractiveness of foreign portfolio investment inflows into Indonesia,\u201d\nhe added.<\/p>\n
He explained that evaluations since the Board of Governors Meeting on\n18\u201319 May 2026 showed the rupiah exchange rate performing weaker than\nexpected. In addition to ongoing global volatility and high domestic\ndemand for foreign exchange, the weakening was driven by outflows of\nforeign portfolio investment from Indonesia.<\/p>\n
\u201cIn this regard, Bank Indonesia deems it necessary to take further\nsteps to strengthen the stabilisation of the rupiah exchange rate by\nincreasing yields and providing other incentives through monetary\noperations to encourage foreign investment inflows,\u201d he said.<\/p>\n
He noted that stabilising the rupiah exchange rate is also intended\nto ensure Indonesia\u2019s external economic resilience and to ensure that\ninflation targets for 2026 and 2027 are met.<\/p>\n
\u201cIn addition to raising the BI Rate to 5.5 per cent, Bank Indonesia\nis also implementing measures to strengthen rupiah exchange rate\nstabilisation to increase yields and provide other incentives for\nforeign investment inflows,\u201d he continued.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bank-indonesia-suddenly-raises-interest-rate-to-5-5-per-cent-perry-warjiyo-explains-1780988240", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }