BI Governor Reveals Reasons for Raising BI Rate Again to 5.75%

Bank Indonesia (BI) Governor Perry Warjiyo has revealed the reasons behind the board of governors’ decision to raise the benchmark BI Rate by 25 basis points to 5.75%. He stated that the primary reason for the policy, decided during the board of governors’ meeting on 17-18 June 2026, was to strengthen the rupiah exchange rate against the US dollar. “This increase is a follow-up measure to strengthen the rupiah exchange rate amidst heightened global uncertainty,” Perry said during an online press conference on Thursday (18/6/2026). Perry emphasised that this monetary policy is also based on BI’s efforts to curb inflationary pressure in line with this year’s target range of 1.5% to 3.5%. “And this is a measure to keep inflation within the target range of 2.5% plus or minus 1% set by the government,” he explained.