Bank Indonesia, during its weekly Board of Governors Meeting on\nTuesday, raised its benchmark interest rate (BI-Rate) by 25 basis points\nto 5.50 per cent to bolster the stabilisation of the rupiah exchange\nrate and ensure inflation remains under control.<\/p>\n
BI Governor Perry Warjiyo, in a statement confirmed in Jakarta on\nTuesday, stated that the interest rate hike is also intended to increase\nyields to enhance the attractiveness of foreign portfolio investment\ninflows into Indonesia.<\/p>\n
In an evaluation since the Monthly Board of Governors Meeting held on\n19-20 May 2026, Perry noted that the rupiah exchange rate has shown\nweaker development than anticipated. He stated that, alongside ongoing\nglobal volatility and high domestic demand for foreign exchange, the\nweakening of the rupiah has also been driven by outflows of foreign\nportfolio 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 to encourage the inflow\nof foreign investment,\u201d he said.<\/p>\n
Perry added that the stabilisation of the rupiah exchange rate is\nalso intended to ensure that Indonesia\u2019s external economic resilience is\nmaintained and that inflation targets for 2026 and 2027 are\nachieved.<\/p>\n
In line with the increase in the benchmark interest rate, BI also set\nthe Deposit Facility rate at 4.50 per cent and the Lending Facility rate\nat 6.25 per cent.<\/p>\n
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.<\/p>\n
The rupiah exchange rate opened at Rp18,134 per US dollar on Tuesday\nmorning. On Monday afternoon, the rupiah exchange rate showed a decline\nof 152 points, or 0.84 per cent, to Rp18,188 per US dollar from the\nprevious rate of Rp18,036 per US dollar.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-stabilisation-bank-indonesia-raises-benchmark-interest-rate-to-5-5-per-cent-1780988568", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }