BI Rate Raised to 5.25%: BRI Mortgage Repayment Simulation

Bank Indonesia (BI) has officially raised its benchmark interest rate to 5.25% in May 2026. The move aims to stabilise the rupiah’s exchange rate and control inflation to prevent price surges. The rate hike is expected to boost domestic investment returns, attracting foreign capital through instruments like government bonds, deposits, and business investments. This influx of foreign currency, converted from US dollars, is anticipated to strengthen the rupiah.

However, higher interest rates may also lead to increased bank lending rates, particularly for floating-rate loans. Although the effects of the BI rate increase won’t be immediate, banks are likely to adjust commercial mortgage rates accordingly.

According to BRI’s official website, BRI mortgage rates vary depending on ongoing promotions. Currently, BRI offers fixed rates ranging from 2.50% to 4.00% for the initial years, followed by floating rates around 12% annually.

For example, a customer purchasing a Rp600 million home with a 15% down payment (Rp90 million) would have a principal loan of Rp510 million. At a 5% effective mortgage rate over 15 years, the estimated monthly repayment in the first year would be Rp4,033,047. BRI does not provide floating-rate simulations at 12%, but a simulation from Rumah123 indicates monthly repayments of Rp5,930,796 at a 12% interest rate.