BI Rate Raised by 50 Basis Points to 5.25%, Here’s Why

Jakarta, CNBC Indonesia – Bank Indonesia raised its policy rate by 50 basis points to the level of 5.25%. The Deposit Facility rate stands at 4.25% and the Lending Facility at 6.25%. “This policy is a further step to strengthen the rupiah’s stability from the impact of turmoil in the Middle East,” said Perry at the briefing of the Board of Governors meeting (RDG) on Wednesday, 20 May 2026. The policy also supports inflation at 2.5% +/- 1 percentage point. According to Perry, the policy is aligned with the 2026 monetary policy focus on stability for external resilience of Indonesia’s economy. “Meanwhile, macroprudential policy and the payments system are directed towards pro-growth. A looser macroprudential stance is being encouraged to spur economic growth by boosting credit to the real sector,” he said.