Banks Respond to BI Rate Hike to 5.50%, Remain Optimistic on Lending

Major Indonesian banks have responded to Bank Indonesia’s (BI) decision to raise its benchmark interest rate, the BI Rate, to 5.50%, which was set during the BI Weekly Board of Governors Meeting on Tuesday (9/6/2026). The banking industry views the move as necessary to preserve macroeconomic stability and the rupiah exchange rate amidst rising global uncertainty. Bank Mandiri Director of Finance & Strategy Novita Widya Anggraini stated the company welcomed BI’s decision, noting the rate hike reflects the central bank’s firmness in maintaining rupiah stability amid external pressures, including the escalation of conflict in the Middle East and foreign portfolio investment outflows. She said maintained stability is a crucial foundation for sustainable economic activity, business and public confidence, and the creation of healthy long-term growth space. Novita affirmed that adjustments to Bank Mandiri’s deposit and lending rates would be made by considering market conditions, liquidity dynamics, and prudent risk management. BCA President Director Gregory Hendra Lembong assessed the decision as a strategic step in responding to global economic dynamics and rupiah exchange rate movements, adding that the bank will continue to monitor benchmark rate developments, banking liquidity conditions, and market supply and demand factors. BCA will conduct periodic evaluations of its lending rates while considering public purchasing power and continue to encourage quality lending with prudential principles and disciplined risk management. BRI Corporate Secretary Dhanny stated the BI Rate hike is part of monetary policy to maintain national macroeconomic stability, ensuring inflation remains on target. BRI believes the national banking industry fundamentals remain strong, supported by adequate capital, maintained liquidity, and resilient asset quality, and will continue to monitor market developments and interest rates carefully to ensure its intermediation function continues to run optimally. Bank Syariah Indonesia (BSI) Corporate Secretary Wisnu Sunandar said the policy would impact the banking industry, but BSI has an advantage through a strong base of low-cost funds, including Hajj savings and wadiah contract-based savings, which have driven its CASA ratio to 63.48% as of April 2026. BSI recorded financing growth of 15.59% to Rp332 trillion up to April 2026 and is optimistic the policy will provide room for the banking industry to grow solidly and sustainably while adhering to the precautionary principle and Good Corporate Governance.