BRI Focuses on Maintaining Business Balance as BI Rate Rises to 5.25 Percent

BRI focuses on maintaining a balance between business growth, asset quality, liquidity and profitability on a sustainable basis. Jakarta — PT Bank Rakyat Indonesia (Persero) Tbk or BRI is focusing on maintaining business balance to respond to Bank Indonesia’s decision to raise the benchmark rate, the BI Rate, by 50 basis points to 5.25 percent. “In facing the dynamics of interest rates, BRI remains focused on maintaining balance between business growth, asset quality, liquidity, and profitability on a sustainable basis,” corporate secretary Dhanny said in a written statement in Jakarta on Wednesday. Separately, the company also said it will continue to strengthen its funding structure by increasing low-cost deposits (CASA) through strengthening the transaction banking ecosystem to maintain cost efficiency of funding on a sustainable basis. On the other hand, BRI ensures intermediation functions will grow selectively while continuing to prioritise prudence, especially in lending to micro, small, and medium enterprises (MSMEs) and the productive sectors that are the company’s main focus. Overall, BRI welcomes BI’s move to maintain macroeconomic stability and the national financial system. “We view this policy as part of Bank Indonesia’s pre-emptive and forward-looking steps to maintain rupiah exchange rate stability and to sustain the resilience of the national economy amid global dynamics that remain full of uncertainty,” Dhanny said. The company believes domestic economic fundamentals remain resilient, supported by maintained economic growth, inflation that is relatively contained, and consumption activity that continues to show positive trends. BI decided to raise the BI Rate to 5.25 percent at the Bank Indonesia Board of Governors meeting for the May 2026 period. BI emphasises that the increase is a further step to strengthen rupiah stability from the impact of high global volatility due to the war in the Middle East, and as a pre-emptive measure to keep inflation in 2026 and 2027 within the target range of 2.5 plus/minus 1 percent or 1.5-3.5 percent as set by the government. BI Governor Perry Warjiyo is optimistic that the rupiah will strengthen in July and August 2026 following the rate rise, helped by cooling domestic FX demand.