Perry Warjiyo: 50 Basis-Point BI Rate Increase Has Been Considered for Indonesia's Economy

Jakarta, CNBC Indonesia — Bank Indonesia (BI) has decided to raise the policy rate by 50 basis points to 5.25%. Meanwhile, the Deposit Facility rate stands at 4.25% and the Lending Facility at 6.25%. “This policy is a further step to strengthen rupiah stability against the impact of tensions in the Middle East,” Perry Warjiyo said at the briefing on the Board of Governors Meeting (RDG) on Wednesday, 20 May 2026. This marks the first rate hike in eight months. The move, he said, had been discussed and considered carefully and measured, while safeguarding external stability and economic growth. “In weighing the extent of the BI rate increase, we consider growth. We balance inflation and the impact on growth, which is not too large, in our Phillips curve framework of inflation and growth,” he said. Perry also said the 50 bps increase would curb inflation and help maintain growth toward the target. “With this policy, we ensure liquidity in money and banking markets remains more than adequate,” he added. Perry emphasised that the decision aligns with the monetary policy focus on stability (“pro-stability”) to strengthen Indonesia’s external resilience to global volatility.