Bank Indonesia raised the BI-Rate by 25 basis points to 5.75% on June 18, 2026, while lifting the Deposit Facility rate to 4.75% and the Lending Facility rate to 6.50%, saying the move was a further step to strengthen rupiah stabilisation amid still-high global uncertainty and a pre-emptive measure to keep 2026 and 2027 inflation within the government’s 2.5±1% target band, while maintaining pro-growth macroprudential and payments policies. To implement the stance, Bank Indonesia said it would intensify foreign-exchange intervention through offshore Non-Deliverable Forward (NDF), spot and Domestic Non-Deliverable Forward (DNDF) transactions, keep Sekuritas Rupiah Bank Indonesia (SRBI) rates across 6-, 9- and 12-month tenors aligned with the BI-Rate increase, continue a 10% hedging-swap incentive for foreign investors, and reopen repo auction windows at 3, 6, 9 and 12 months while ensuring base money growth remains above 10%. Consumer price inflation rose to 3.08% year on year in May from 2.42% in April, and Bank Indonesia forecast 2026 growth at 4.9%-5.7% as domestic demand stays solid, with bank credit growth accelerating to 11.51% year on year in May. On the external side, the April trade surplus narrowed to USD0.1 billion from USD3.3 billion in March, net capital inflows in the second quarter reached USD3.9 billion as of June 15 after a USD0.8 billion net outflow in the first quarter, and reserves stood at USD144.9 billion at end-May, equivalent to 5.6 months of imports. Th
Bank Indonesia2026-06-18
Bank Indonesia Raises BI-Rate by 25 Basis Points to 5.75%
Bank Indonesia raised the BI-Rate by 25 basis points to 5.75% on June 18, 2026, while increasing the Deposit Facility rate to 4.75% and the Lending Facility rate to 6.50%, describing the move as a further step to stabilise the rupiah amid high global uncertainty and a pre-emptive measure to keep 2026 and 2027 inflation within the government’s 2.5±1% target band while maintaining pro-growth macroprudential and payments policies. It said it would intensify foreign-exchange intervention through offshore non-deliverable forward, spot and domestic non-deliverable forward transactions and align Sekuritas Rupiah Bank Indonesia rates with the hike, with May inflation at 3.08% year on year and reserves at USD144.9 billion at end-May.