{
    "success": true,
    "data": {
        "id": 1792833,
        "msgid": "bi-rate-suddenly-raised-to-5-5-per-cent-bank-indonesia-provides-explanation-1780988181",
        "date": "2026-06-09 12:59:03",
        "title": "BI Rate Suddenly Raised to 5.5 Per Cent, Bank Indonesia Provides Explanation",
        "author": "",
        "source": "VIVA",
        "tags": "bisnis",
        "topic": "Banking",
        "summary": "Bank Indonesia has increased the BI-Rate by 25 basis points to 5.50% to stabilise the Rupiah against global volatility. The central bank aims to maintain inflation within the government's target range and enhance the attractiveness of Indonesian assets for foreign portfolio investment.",
        "content": "<p>The weekly Board of Governors Meeting of Bank Indonesia today decided\nto raise the BI-Rate by 25 bps to 5.50%, the Deposit Facility rate by 25\nbps to 4.50%, and the Lending Facility rate by 25 bps to 6.25%.<\/p>\n<p>Bank Indonesia Governor Perry Warjiyo explained that this increase is\na follow-up measure to strengthen the stabilisation of the Rupiah\nexchange rate amidst high global volatility caused by the war in the\nMiddle East. It also serves as a pre-emptive step to ensure that\ninflation for 2026 and 2027 remains within the government\u2019s target range\nof 2.5\u00b11%.<\/p>\n<p>\u201cThis policy is also aimed at increasing yields to enhance the\nattractiveness of foreign portfolio investment inflows into Indonesia,\u201d\nPerry stated in Jakarta on Tuesday, 9 June 2026.<\/p>\n<p>In accordance with legislation and established practice, Bank\nIndonesia holds weekly Board of Governors Meetings every Tuesday to\nevaluate the implementation of the policy mix established during the\nMonthly Board of Governors Meetings. Following the evaluation from the\nMonthly Meeting held on 19-20 May 2026, the Rupiah exchange rate showed\nweaker development than previously anticipated.<\/p>\n<p>He explained that, in addition to ongoing global volatility and high\ndomestic demand for foreign exchange, the weakening was also driven by\nforeign portfolio investment outflows from Indonesia.<\/p>\n<p>In this regard, Bank Indonesia deems it necessary to take further\nsteps to strengthen the stabilisation of the Rupability exchange rate by\nincreasing yields and providing other incentives to encourage foreign\ninvestment inflows. \u201cThe stabilisation of the Rupiah exchange rate is\nalso intended to ensure that Indonesia\u2019s external economic resilience is\nmaintained and that the inflation targets for 2026 and 2027 are\nachieved,\u201d he added.<\/p>\n<p>Alongside the increase of the BI-Rate to 5.50%, Bank Indonesia is\nalso implementing measures to strengthen Rupiah stabilisation by\nincreasing yields and other monetary operation incentives for foreign\ninvestment inflows, as follows:<\/p>\n<p>An increase in the interest rate structure of Bank Indonesia Rupiah\nSecurities (SRBI) across all 6, 9, and 12-month tenors to further\nenhance yields for foreign portfolio investment inflows. The increase in\nthe SRBI interest rate structure is conducted according to market\nmechanisms to ensure that portfolio investment in Indonesia remains\ncompetitive with other countries.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bi-rate-suddenly-raised-to-5-5-per-cent-bank-indonesia-provides-explanation-1780988181",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}