Why Destry Kept BI Rate at 5.75% in October 2026

Bank Indonesia (BI) decided to keep its benchmark BI Rate at 5.75% at the Board of Governors’ Meeting on 20–21 October 2026. However, BI raised the deposit facility rate to 5%. The lending facility rate remained at 6.5%.

BI Governor Destry Damayanti said the decision was part of the central bank’s strategy to maintain rupiah exchange-rate stability amid external pressures, while also safeguarding economic stability and keeping inflation in check.

“The BI Board of Governors’ Meeting on 20–21 October 2026 decided to keep the BI Rate at 5.75% and the lending facility rate at 6.5%, and to raise the deposit facility rate to 5%,” Destry said in a presentation on the meeting’s results on Wednesday (21 October 2026).

Destry explained that BI was also strengthening its incentive policy through various instruments, including Domestic Non-Deliverable Forwards (DNDFs) and hedging facilities.

The measures are intended to attract foreign capital inflows, maintain rupiah stability, and deepen the money and foreign-exchange markets (PUVA).

Strengthening these instruments is part of BI’s efforts to address external pressures that could affect the rupiah exchange rate and capital flows into domestic financial markets.

Looking ahead, BI will continue to optimise its monetary policy mix to strengthen external resilience, maintain exchange-rate stability and ensure inflation remains under control in 2026–2027.

“This policy remains consistent with the strategy of stabilising the rupiah amid external pressures and keeping inflation under control in 2026–2027. Going forward, BI will continue to optimise various monetary policy instruments to strengthen external resilience, including by taking the necessary measures,” Destry said.

Destry also stressed that BI would continue to monitor global economic developments and take the necessary steps to maintain Indonesia’s economic stability.