BI Governor Perry Raises Rate as Foreign Interest Rates Climb

Jakarta, CNBC Indonesia - Bank Indonesia (BI) increased its benchmark interest rate, or BI-Rate, by 25 basis points to 5.50% during its Weekly Board of Governors Meeting today, Tuesday (9/6/2026). The Deposit Facility rate rose by 25 bps to 4.50%, and the Lending Facility rate increased by 25 bps to 6.25%. “Today we raised it to 5.50%,” said BI Governor Perry Warjiyo during a working meeting with the House of Representatives’ Budget Committee in Jakarta, Tuesday (9/6/2026). Perry stated the BI-Rate hike was an effort to keep pace with global developments, where benchmark rates are being raised to attract foreign investment. “We do not like raising interest rates, but it is necessary to attract foreign portfolio investment, as interest rates abroad have all risen,” he explained. The influx of foreign funds is considered crucial to stemming the depreciation of the rupiah exchange rate, which has been ongoing recently. The US dollar has now surpassed the 18,000 rupiah mark.