Bank Mandiri: Interest Rate Adjustments to Reference Market Conditions

PT Bank Mandiri (Persero) Tbk stated that adjustments to its deposit and lending rates will consider market conditions, liquidity dynamics, and prudent risk management, following the increase in the BI-Rate to 5.50 percent. Bank Mandiri Director of Finance & Strategy Novita Widya Anggraini said that regardless of the direction of interest rate movements, banks continue to play an important role in maintaining the smooth flow of economic activity through their intermediation function and reliable transaction services. “In line with this, Bank Mandiri will continue to strengthen its ecosystem value chain strategy and enhance digital capabilities to support the needs of the wider community and business activities on an ongoing basis,” Novita said in a statement in Jakarta on Wednesday. Novita added that going forward, the company is optimistic it can continue to support the financing needs of business operators, MSMEs, and the public. This aligns with its role as an agent of development in encouraging the creation of added value across various economic sectors. In general, Bank Mandiri welcomed the decision of Bank Indonesia’s Weekly Board of Governors’ Meeting on Tuesday (9/6) to raise the benchmark interest rate by 25 basis points to 5.50 percent. The company views that this step reflects the central bank’s firmness in maintaining rupiah exchange rate stability amidst external dynamic pressures, including the escalation in the Middle East and outflows of foreign portfolio investment. “Maintained stability is an important foundation for the sustainability of economic activity, the confidence of business operators and the public, as well as the creation of healthy long-term growth space,” Novita said. BI Governor Perry Warjiyo stated the rupiah depreciation had exceeded the central bank’s projections, prompting the BI Board of Governors to decide on a 25 bps BI-Rate hike at the Weekly Meeting on Tuesday (9/6). Correspondingly, the deposit facility and lending facility interest rates were also each raised by 25 bps to 4.50 percent and 6.25 percent, respectively. In addition to the BI-Rate increase, BI also announced measures to strengthen rupiah stabilisation, including raising the SRBI interest rate structure for all tenors, providing incentives in the form of lower hedging swap rates for foreign investors, reopening the repo instrument auction window for banks, and increasing the intensity of monetary operations in both rupiah and foreign currencies. BI had recently raised the BI-Rate by 50 bps at the monthly Board of Governors Meeting on 19-20 May 2026. The May 2026 BI-Rate increase was the first adjustment after the benchmark rate was held at 4.75 percent since September 2025. Throughout 2025, BI had previously cut the benchmark rate five times for a total reduction of 125 bps. BI is next scheduled to hold its monthly Board of Governors Meeting on 17-18 June 2026. The Jakarta Interbank Spot Dollar Rate on Wednesday (10/6) strengthened to Rp17,971 per US dollar from Rp18,141 per US dollar on Tuesday (9/6).