BRI Ensures Optimal Intermediation Function After BI-Rate Hike

PT Bank Rakyat Indonesia (Persero) Tbk, or BRI, has ensured that the bank’s intermediation function will continue to operate optimally after Bank Indonesia (BI) raised its benchmark interest rate, the BI-Rate, to 5.50 percent. “As a bank with a primary focus on the MSME segment, BRI will continue to closely monitor market conditions and interest rate developments, as well as ensure the intermediation function runs optimally to support national economic activity,” said BRI Corporate Secretary Dhanny in a written statement in Jakarta on Tuesday. The company assessed that the BI-Rate increase is part of monetary policy to maintain national macroeconomic stability, particularly the stability of the rupiah exchange rate amid increasing global financial market volatility. Additionally, the bank believes the decision was taken in order to keep inflation within the set target. BRI believes that the fundamentals of the national banking industry remain strong, supported by adequate capital, maintained liquidity, and resilient asset quality. The company also stated it is continuing to manage its assets and liabilities prudently. “The company will also continue to ensure capital adequacy, maintain liquidity, and optimise the bank’s liability structure to support national economic growth,” said Dhanny. Bank Indonesia, in a weekly Board of Governors Meeting on Tuesday, again raised the benchmark interest rate by 25 bps to 5.50 percent to strengthen stabilisation of the rupiah exchange rate and keep inflation under control. BI Governor Perry Warjiyo said this benchmark rate increase is also aimed at increasing yields to enhance the attractiveness of foreign portfolio investment inflows into Indonesia. In an evaluation since the Monthly Board of Governors Meeting on 19-20 May 2026, Perry said the rupiah exchange rate showed a weaker development than expected. Aside from continuing global turmoil and high domestic foreign exchange demand, he said the weakening of the rupiah exchange rate was also driven by foreign portfolio investment outflows from Indonesia. “In connection with this, Bank Indonesia deems it necessary to take further steps to strengthen stabilisation of the rupiah exchange rate by again increasing yields and a number of other incentives to encourage the inflow of foreign investment,” he said.