To Stabilise Rupiah, Could the BI Rate Rise Again Next Week?

Bank Indonesia is responding to the potential for further BI Rate increases during the monthly Board of Governors Meeting scheduled for 17-18 June 2026.

The central bank stated that it continues to conduct assessments and evaluations in every policy decision to strengthen the stabilisation of the Rupiah exchange rate.

“We will continue to evaluate because BI certainly conducts this through thorough assessment and evaluation. We will keep evaluating the steps taken in our efforts to continuously strengthen our exchange rate stability,” said Ramdan Denny Prakoso, Executive Director of the Bank Indonesia Communications Department, during a meeting at the Parliament Building, Jakarta, on Wednesday (10/06/202 nghiệm).

The Bank Indonesia Weekly Board of Governors Meeting on 9 June 2026 decided to raise the BI-Rate by 25 bps to 5.50%, the Deposit Facility rate by 25 bps to 4.50%, and the Lending Facility rate by 25 bps to 6.25%.

“This increase is a follow-up measure to strengthen the stabilisation of the Rupiah exchange rate from the impact of high global volatility caused by the war in the Middle East, and as a pre-emptive step to keep inflation in 2026 and 2027 within the government’s target range of 2.5±1%,” Bank Indonesia stated in a release on Tuesday (09/06/2026).

Bank Indonesia also noted that this policy is intended to increase yields to enhance the attractiveness of foreign portfolio investment inflows into Indonesia.

“In the evaluation since the Monthly Board of Governors Meeting on 19-20 May 2026, the Rupiah exchange rate showed weaker development than expected,” the central bank added.