BI Rate Rises to 5.75%, Government Deems It Effective for Rupiah and IHSG
The Coordinating Ministry for Economic Affairs has stated that Bank Indonesia’s decision to raise its benchmark interest rate is a positive move amidst global turmoil. Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso expressed confidence that the central bank has fulfilled its role in stabilising the rupiah exchange rate, while the rate hike also serves to maintain inflation stability. Regarding inflation, Susiwijono emphasised that his ministry has been continuously coordinating with BI through the Central Inflation Control Team (TPIP). “This is a response to both global and national dynamics, and I believe the central bank is playing a very good and strategic role in controlling everything,” he said when met at the Coordinating Ministry for Economic Affairs office on Friday (19/6/2026). Susiwijono also viewed the benchmark rate increase as a measure to maintain the interest rate spread with the US Federal Reserve, the global benchmark. The aim is to prevent capital outflows from Indonesia, alongside other efforts to attract foreign funds into the country. “Alhamdulillah, the results have been quite good. The rupiah is relatively under control, even though the rate is around Rp17,700 to Rp18,000, it has not breached Rp18,000. The IHSG has also remained above 6,000 for several days,” Susi said. As previously reported, the Bank Indonesia Board of Governors meeting on 18-19 June 2026 decided to raise the BI-Rate by 25 basis points to 5.75%. Accordingly, the Deposit Facility rate was raised by 25 bps to 4.75%, and the Lending Facility rate by 25 bps to 6.50%. “The BI Board of Governors meeting on 17-18 June 2026 decided to raise the BI Rate by 25 bps to 5.75%,” BI Governor Perry Warjiyo stated in a press conference on Thursday (18/6/2026). This increase is a follow-up step to strengthen rupiah exchange rate stabilisation and serves as a pre-emptive measure to keep inflation within the government’s target range of 2.5±1% for 2026 and 2027.