Bank Indonesia Raises BI Rate by 25 bps to 5.75%, Governor Explains Rationale

Jakarta – The Bank Indonesia (BI) Board of Governors meeting on 17-18 June 2026 decided to raise the benchmark BI-Rate by 25 basis points to 5.75%. The central bank also increased the Deposit Facility rate by 25 bps to 4.75% and the Lending Facility rate by 25 bps to 6.50%.

BI Governor Perry Warjiyo stated that the rate hike is a further step to strengthen the stabilisation of the rupiah exchange rate against the US dollar amidst heightened global uncertainty. He described the decision as a pre-emptive measure to ensure inflation remains within the government’s target range of 2.5% ± 1% for 2026 and 2027. The policy is also aimed at curbing inflationary pressures throughout 2026, keeping them within the 1.5% to 3.5% corridor.