{
    "success": true,
    "data": {
        "id": 1793943,
        "msgid": "bi-raises-benchmark-rate-to-attract-foreign-inflows-1781013015",
        "date": "2026-06-09 19:33:44",
        "title": "BI raises benchmark rate to attract foreign inflows",
        "author": "",
        "source": "ANTARA_EN",
        "tags": "",
        "topic": "Economy",
        "summary": "Bank Indonesia has increased its benchmark interest rate by 25 basis points to 5.5 per cent in an effort to attract foreign portfolio investment and stabilise the rupiah. Alongside the rate hike, the central bank outlined a series of complementary measures, including continued market interventions and lowering the threshold for cash foreign exchange purchases without underlying documents. The move represents a strategic pivot after a period of rate cuts earlier in 2025, aiming to strengthen Indonesia's external position.",
        "content": "<p>On Tuesday, through its weekly Board of Governors Meeting (RDG), BI\ndecided to raise the BI-Rate by 25 basis points (bps) to 5.5\npercent.<\/p>\n<p>\u201cToday we raised it again to 5.5 percent. We do not like raising\ninterest rates, but (did so) to attract foreign portfolio investment,\u201d\nhe said during a working meeting with the House of Representatives\u2019\nBudget Committee here on Tuesday.<\/p>\n<p>BI recently raised the BI-Rate by 50 bps at its monthly RDG on May\n19-20.<\/p>\n<p>The increase marked the first adjustment after the benchmark rate was\nheld at 4.75 percent since September 2025.<\/p>\n<p>Throughout 2025, BI had previously cut the benchmark rate five times,\ntotaling a 125 bps reduction.<\/p>\n<p>BI is scheduled to hold its next monthly RDG on June 17-18.<\/p>\n<p>In addition to interest rate adjustments, Warjiyo outlined other\nmeasures aimed at maintaining rupiah exchange rate stability, including\ncontinued foreign exchange interventions in both offshore\nNon-Deliverable Forward (NDF) markets and onshore spot and Domestic\nNon-Deliverable Forward (DNDF) transactions.<\/p>\n<p>BI also ensures that foreign exchange reserves remain more than\nsufficient to maintain rupiah exchange rate stability.<\/p>\n<p>Furthermore, BI said it is boosting foreign capital inflows by\nincreasing the interest rate structure of Bank Indonesia Rupiah\nSecurities (SRBI), in coordination with the government so that portfolio\ninvestment grows not only in SRBI instruments but also in government\nbonds (SBN) and the stock market.<\/p>\n<p>In addition, BI has lowered the threshold for cash foreign exchange\npurchases against the rupiah without underlying documents to US$25,000\nper person per month, effective June 2026.<\/p>\n<p>BI is also strengthening supervision of banks and corporations with\nhigh US dollar purchasing activity in close coordination with the\nFinancial Services Authority (OJK).<\/p>\n<p>Related news: Indonesia to continue budget efficiency drive in 2027:\nMinister<\/p>\n<p>Related news: Purbaya unveils 2027 growth roadmap to anchor 8 pct\ntarget by 2029<\/p>\n<p>Related news: Finance Minister pushes stricter rules on port cargo\nstorage<\/p>\n<p>Translator: Rizka, Kenzu<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bi-raises-benchmark-rate-to-attract-foreign-inflows-1781013015",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}