Property Business Prospects Amid the High Interest Rate Era

The property sector is once again facing severe challenges after Bank Indonesia (BI) raised its benchmark interest rate, the BI Rate, by 25 basis points to 5.50%. The decision was made out of the ordinary as it was set outside the schedule of the monthly Board of Governors’ Meeting. The tightening measure was decided during the Weekly Board of Governors’ Meeting on Tuesday (9/6/2026). Bank Indonesia Governor Perry Warjiyo explained that this monetary policy intervention was crucial as a step to respond to the ongoing depreciation pressure on the rupiah exchange rate.