Video: BI Has This Strategy to Maintain Rupiah Stability Amid Turmoil

Jakarta, CNBC Indonesia - The Bank Indonesia Board of Governors meeting in June 2026 decided to raise the benchmark interest rate by 25 bps. This policy has brought the BI Rate up by 100 bps since May 2026, to 5.75%.

Bank Indonesia Senior Deputy Governor Destry Damayanti stated that the BI interest rate policy is part of the central bank’s mandate to maintain the stability of Indonesia’s financial system. Amid enormous global pressures, BI is prioritising stability while still ensuring steps to encourage growth.

The 100 bps increase in the BI Rate, which is BI’s monetary instrument for maintaining stability, has also been followed by the implementation of macroprudential policies through incentives for banks willing to extend credit to priority sectors, which have already reached a value of Rp 420 trillion.

In the payment system, BI is providing transaction relief for MSMEs and deepening financial markets, steps which are expected to help maintain the stability of the rupiah exchange rate.

This comes amid global uncertainty that is driving a strengthening of the Dollar Index and putting pressure on major global currencies, including the rupiah. Therefore, through the BI Rate increase, it is hoped that the attractiveness of rupiah instruments for foreign investors will improve, with net inflows into SBN and SRBI reaching above Rp 103 trillion as of June 2026.

BI is also highlighting geopolitical developments in the Middle East that are impacting energy price increases, which in turn affect non-subsidised fuel prices and could drive inflation. On the other hand, rising prices of other commodities such as coal present an opportunity to increase the country’s foreign exchange reserves.