Bank Indonesia Holds BI Rate at 5.75 Percent, Here's the Full Explanation

Bank Indonesia’s Board of Governors Meeting (RDG) on 21–22 July 2026 decided to maintain the benchmark interest rate, or BI Rate, at 5.75 per cent.

BI Governor Perry Warjiyo said the meeting also decided to keep the Deposit Facility rate at 4.75 per cent, while the Lending Facility rate remains at 6.50 per cent.

“The Board of Governors Meeting of Bank Indonesia on 21–22 July 2026 decided to maintain the BI Rate at 5.75 per cent,” Perry said during a press teleconference on Wednesday, 22 July 2026.

He explained that BI is also expanding incentive policies and a number of other measures to increase inflows of foreign portfolio investment and strengthen the stability of the rupiah exchange rate.

This comes as the central bank works to accelerate the deepening of the money and foreign exchange markets, as well as to improve liquidity and address liquidity segmentation in the money and banking markets.

Perry acknowledged that the BI Rate decision and the other policies in question form an integrated part of BI’s policy mix, which remains consistently focused on further strengthening the stability of the rupiah exchange rate amid persistently high global uncertainty.

“As well as maintaining inflation in 2026–2027 within the target range of 2.5 +/- 1 per cent set by the pro-stability government,” Perry said.

Meanwhile, Perry continued, macroprudential and payment system policies remain directed towards supporting pro-growth momentum.

He confirmed that accommodative macroprudential policies will continue to be strengthened to drive economic growth through increased credit and financing to the real sector, while safeguarding financial system stability.

“Payment system policies remain directed at supporting economic activity through the expansion of digital payment acceptance, strengthening the industrial structure of the payment system, and improving the reliability and resilience of payment system infrastructure,” he said.