BI Keeps Rate at 5.75% in August

BI Keeps Rate at 5.75% in August

Jakarta. Bank Indonesia (BI) kept its benchmark interest rate at 5.75% on Wednesday, prioritizing rupiah stability and inflation control amid heightened global volatility stemming from the war in the Middle East.

The central bank also held its deposit facility rate at 4.75% and lending facility rate at 6.50% following its Aug. 18-19 Board of Governors Meeting.

Acting BI Governor Destry Damayanti said the decision was aimed at strengthening the rupiah against external pressures while keeping inflation in 2026 and 2027 within the government’s target range of 2.5% ± 1%.

“The decision is also aimed at supporting sustainable economic growth,” Destry said at a press conference on Wednesday.

BI will also expand its incentive policies and other measures to attract foreign portfolio investment, strengthen rupiah stability, deepen the money and foreign exchange markets, and improve liquidity while addressing liquidity segmentation in financial markets and the banking sector.

Meanwhile, macroprudential and payment system policies will remain focused on supporting economic growth.

BI will continue to strengthen its accommodative macroprudential policy to boost lending and financing to the real sector while maintaining financial system stability.

The central bank will also expand digital payment adoption, strengthen the payment system industry and improve the reliability and resilience of payment infrastructure to support economic activity.

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