BI: Rupiah Continues to Strengthen After BI-Rate Hike to 5.5 Percent
Jakarta (ANTARA) - Bank Indonesia (BI) stated that the rupiah exchange rate against the US dollar has continued to strengthen and is now back below the level of Rp18,000 per US dollar, following the increase in the benchmark interest rate (BI-Rate) to 5.5 percent.
Head of the BI Communication Department Ramdan Denny Prakoso said foreign investors responded positively to the policy mix strengthening, namely the BI-Rate hike and the strengthening of yields on Bank Indonesia Rupiah Securities (SRBI) and Government Securities (SBN).
“This is reflected in the increased foreign capital inflows into SRBI instruments after the SRBI auction on 10 June 2026. Foreign capital inflows have also started to return to the SBN market, especially in short and medium tenors,” Ramdan said in a written statement in Jakarta on Friday.
Ramdan added that the central bank will continue to monitor global and domestic financial market developments and maintain the attractiveness of domestic financial instruments to support foreign capital inflows.
In addition, BI will continue to optimise rupiah exchange rate stabilisation measures through Non-Deliverable Forward (NDF) interventions in the offshore market as well as spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market in a consistent and measured manner.
On Tuesday (9/6), through its Weekly Board of Governors Meeting (RDG), BI decided to raise the BI-Rate by 25 basis points (bps) to the current level of 5.5 percent.
In line with this, the deposit facility and lending facility rates were also raised by 25 bps each to 4.50 percent and 6.25 percent, respectively.
BI Governor Perry Warjiyo said the rupiah depreciation had exceeded the central bank’s projections, prompting the BI Board of Governors to decide on a BI-Rate hike during the Weekly Meeting on Tuesday.
In its press release, BI also announced measures to strengthen rupiah stabilisation, including an increase in the SRBI interest rate structure for all tenors, incentives in the form of lower hedging swap rates for foreign investors, the reopening of the repo instrument auction window for banks, and increased intensity of monetary operations, both in rupiah and foreign exchange.
BI had recently raised the BI-Rate by 50 bps at the Monthly RDG on 19-20 May 2026.
The BI-Rate increase in May 2026 was the first adjustment after the benchmark rate had been held at 4.75 percent since September 2025. Throughout 2025, BI had previously cut the benchmark rate five times, with a total reduction of 125 bps.
BI is next scheduled to hold its Monthly RDG on 17-18 June 2026.