BRI Ensures Optimal Intermediation Function After BI-Rate Hike
Jakarta (ANTARA) - PT Bank Rakyat Indonesia (Persero) Tbk, or BRI, has ensured that the bank’s intermediation function will continue to operate optimally following Bank Indonesia’s (BI) decision to raise the benchmark interest rate, known as the BI-Rate, to 5.50 per cent.
“As a bank with a primary focus on the MSME segment, BRI will continue to closely monitor market developments and interest rate conditions, ensuring that the intermediation function remains optimal to support national economic activities,” said BRI Corporate Secretary Dhanny in a written statement in Jakarta on Tuesday.
The company considers the BI-Rate increase to be part of the monetary policy aimed at maintaining national macroeconomic stability, particularly the stability of the rupiah exchange rate amidst increasing volatility in global financial markets.
Furthermore, the bank believes that this decision was made to ensure that inflation remains within the established targets.
BRI maintains that the fundamentals of the national banking industry remain strong, supported by adequate capital, maintained liquidity, and resilient asset quality. The company also stated that it continues to manage its assets and liabilities wisely.
“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.
During its weekly Board of Governors Meeting on Tuesday, Bank Indonesia raised the benchmark interest rate (BI-Rate) by 25 bps to 5.50 per cent to strengthen the stabilisation of the rupiah exchange rate and keep inflation under control.
BI Governor Perry Warjiyo stated that the increase in the benchmark rate is also intended to improve 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 noted that the rupiah exchange rate showed weaker developments than expected.
In addition to ongoing global volatility and high domestic demand for foreign exchange, he stated that the weakening of the rupiah was also driven by the outflow of foreign portfolio investments from Indonesia.
“In this regard, Bank Indonesia deems it necessary to take further steps to strengthen the stabilisation of the rupiah exchange rate by restoring yields and providing other incentives to encourage the inflow of foreign investment,” he said.