BI to Raise Interest on Government Deposits in 'Win-Win' Scheme, Governor Perry Reveals

Bank Indonesia (BI) Governor Perry Warjiyo has pledged to increase the remuneration paid by the central bank on government deposits. The announcement was made during a working meeting with the House of Representatives’ Budget Committee (Banggar) on Tuesday (7/7/2026).

The increase in remuneration is a response to the rising interest rates on Government Securities (SBN), which were hiked to attract foreign capital inflows. Perry stated that the central bank would raise the rate paid on government funds to compensate for the increased debt burden.

“Previously, we provided remuneration at 80% of the BI Rate. We will now increase it to the BI Rate plus a certain margin,” Perry explained. He assured that Bank Indonesia would bear the entire cost of the interest rate hike.

“This is a win-win solution. Capital inflows continue, the rupiah remains stable, and we will return the interest cost burden. We will ensure that the government reaches a break-even point,” he emphasised.

The plan to increase remuneration was initially disclosed by Perry during a press conference at the parliament a month earlier, on 6 June 2026. At that time, he confirmed that the central bank would raise the interest paid on government funds placed with BI, though the exact amount was still being calculated. The policy aims to ease the government’s interest payment burden.

“Government cash management remains with BI, but there will be an increase in the remuneration or interest paid by BI to the government,” Perry stated.