Breaking News: BI Rate Rises, Rupiah Strengthens to Rp17,600 per US$

Jakarta — The rupiah strengthened against the US dollar after Bank Indonesia (BI) announced its policy rate decision on Wednesday (20 May 2026). According to Refinitiv data, as of 14:26 WIB, the rupiah rose 0.54% to Rp17,600 per US dollar. The gain followed BI’s increase of the policy rate by 50 basis points to 5.25%.

Earlier, the rupiah had already turned higher before the announcement, trading at Rp17,665 per US$ as of 14:00 WIB, up 0.17%. The decision drew the focus of market participants amid ongoing pressure on the rupiah. Earlier in the morning, the rupiah opened weaker at Rp17,730 per US$, depreciating 0.20%.

In line with the BI Rate, the central bank set the Deposit Facility at 4.25% and the Lending Facility at 6.25%. The decision ends BI’s eight-month policy of holding rates.

BI said the move was aimed at strengthening exchange-rate stability amid worsening global conditions due to the war in the Middle East, while keeping inflation on track within the 2026-2027 target band of 2.5 ± 1%. The decision also beat CNBC Indonesia’s poll. Of 15 institutions polled, nine expected the BI Rate to rise by 25 bps to 5.00%, while six projected that rates would remain at 4.75%. Therefore, the 50 bps increase to 5.25% was more aggressive than the majority of market expectations.