Kadin Emphasises BI Rate Hike to Maintain Economic Stability

The Indonesian Chamber of Commerce and Industry (Kadin) views Bank Indonesia’s (BI) move to raise its benchmark interest rate as a necessary policy to maintain national economic stability. Kadin Chairman Anindya Bakrie stated that the business community appreciates the step, which is aimed at preserving stability. “We are optimistic that we can get through this situation. Signs of improvement are already visible. BI’s interest rate hike is indeed intended to maintain stability, and we appreciate this measure,” Anin, as he is familiarly known, said in Jakarta on Friday. Anin added that Kadin is ready to strengthen synergy with BI down to the regional level to support various economic development agendas. With Kadin’s network spanning 514 regencies and cities, along with various business associations, the business community is prepared to contribute to increasing investment, exports, downstream processing, and strengthening MSMEs. He noted that businesses continue to strive to boost exports to enlarge the trade surplus and increase the supply of foreign exchange. Kadin is also encouraging the entry of foreign direct investment to strengthen national industrial capacity. “We see that optimism remains. The challenges are indeed significant, but opportunities are also wide open. With strong synergy between the government, BI, the banking sector, and the business community, Indonesia has sufficient capital to maintain stability while accelerating economic growth,” Anin said. Meanwhile, Bank Indonesia Governor Perry Warjiyo affirmed the central bank’s commitment to maintaining economic stability while supporting national growth. He stressed that BI will deploy all its policies to stabilise the rupiah and back the government’s priority programmes. “BI is going all out to maintain stability and support economic growth,” Perry stated, adding that BI will continue to strengthen coordination with the government, the Ministry of Finance, and the Financial System Stability Committee (KSSK). The BI Governor previously announced the decision to raise the BI-Rate by 25 basis points to 5.75 percent during the June 2026 Board of Governors Meeting. The Deposit Facility rate was also increased by 25 bps to 4.75 percent, and the Lending Facility rate rose by 25 bps to 6.50 percent. Perry explained that the hike was a follow-up measure to further strengthen rupiah exchange rate stabilisation amid persistently high global uncertainty, as well as a pre-emptive step to keep inflation within the government’s target range of 2.5±1 percent for 2026 and 2027.