Indonesia's Risk Perception Remains High

Bank Indonesia (BI) on Tuesday (9/6) raised its benchmark interest rate by 25 basis points to 5.50%. Over the past two months, BI has increased the benchmark rate by 75 bps. This decision reflects the authority’s efforts to strengthen the appeal of rupiah instruments amid market pressures and currency depreciation. The move saw the rupiah strengthen slightly by 0.72% on the day to Rp 18,058 per US dollar yesterday (9/6). The Jakarta Composite Index (IHSG) also recorded a gain of 7.57% to 5,746.65.