Bank Indonesia Holds Benchmark Rate for Third Consecutive Month
Jakarta, CNBC Indonesia - The Board of Governors of Bank Indonesia (BI) again maintained the benchmark BI Rate at 5.75% in August 2026. This decision marks the third consecutive month the BI Rate has been held since the board of governors meeting in June 2026.
“The Bank Indonesia Board of Governors Meeting on 18-19 August 2026 decided to maintain the BI-Rate at 5.75%,” said Acting Governor of BI Destry Damayanti at a press conference on Wednesday (19/8/2026).
Destry said the decision remains consistent with efforts to strengthen rupiah exchange rate stability from the impact of high global turmoil due to the war in the Middle East, maintain the inflation target of 2.5±1% in 2026 and 2027, and support sustainable economic growth.
Along with the benchmark rate being held at 5.75%, the BI board of governors also decided to continue expanding incentive policies and a number of other policies to increase foreign capital inflows and strengthen rupiah exchange rate stability, increase liquidity and reduce liquidity segmentation in the money and banking markets, and accelerate deepening of the money market and foreign exchange market.
Meanwhile, macroprudential policy and payment system policy continue to be directed at supporting economic growth. Loose macroprudential policy continues to be strengthened to encourage economic growth through increased credit/financing to the real sector while maintaining financial system stability.
Payment system policy remains directed at supporting economic activity through expanding digital payment acceptance, strengthening the payment system industry structure, and improving the reliability and resilience of payment system infrastructure.
The direction of the monetary, macroprudential, and payment system policy mix in strengthening stability and supporting sustainable economic growth is also supported by the following policy measures:
- Strengthening the effectiveness of monetary policy implementation to stabilise the rupiah exchange rate and keep 2026 and 2027 inflation within the 2.5±1% target, by:
optimising foreign exchange intervention strategies to strengthen rupiah exchange rate stabilisation through Non-Deliverable Forward transactions in overseas markets as well as spot and Domestic Non-Deliverable Forward transactions in the domestic market;
managing the interest rate structure in the money market in line with the BI-Rate policy and pro-market monetary operation instrument rates accompanied by strengthening pro-market monetary operation strategies;
maintaining adequate liquidity in the money market and banking by ensuring primary money growth of more than 10% in line with monetary expansion;
Strengthening the effectiveness of rupiah exchange rate stabilisation and maintaining adequate rupiah liquidity by expanding underlying transactions for foreign funding that can obtain a premium reduction incentive for Sell Hedge Swaps of 12.5%, from previously only covering portfolio inflows to also including foreign loans by banks and foreign direct investment. These hedge swap transactions have a maximum tenor of 12 months with a maximum contract period of 3 years and can be rolled over according to the remaining hedge contract period. The expansion of hedge swap instrument transactions takes effect in the second week of September 2026 for foreign loan funds and foreign direct investment entering since 1 July 2026;
Strengthening preparation for implementation of Macroprudential Policy related to:
the Macroprudential Liquidity Incentive Policy for Money Market Deepening to maintain adequacy and encourage liquidity redistribution while continuing to encourage credit/financing distribution to priority sectors, effective 1 September 2026;
the Macroprudential Inclusive Financing Ratio Policy to encourage banking credit/financing distribution to inclusive and sustainable sectors, effective 1 October 2026;
- Strengthening implementation of payment system digitalisation measures in accordance with the Indonesia Payment System Blueprint 2030 to support economic growth and expand digital economic activity and inclusive finance by:
encouraging implementation of the Indonesia Credit Card launched on 17 August 2026 and strengthening industry readiness for expansion of the 0% QRIS Merchant Discount Rate policy for transactions up to Rp100,000, effective 1 October 2026;
organising the Indonesia Digital Finance Economy Festival in collaboration with the Indonesia Fintech Summit & Expo 2026 on 24-26 September 2026, in synergy with the Coordinating Ministry for Economic Affairs, the Financial Services Authority, and the financial industry;
- Strengthening policy coordination with the Government, the Financial System Stability Committee, and other stakeholders in efforts to maintain stability and support sustainable economic growth.