Bank Indonesia held the BI-Rate at 5.75% in its July 2026 decision, while keeping the Deposit Facility rate at 4.75% and the Lending Facility rate at 6.50%, saying the decision and a broader package of incentives and market measures were intended to reinforce rupiah stability amid elevated global uncertainty and keep 2026 and 2027 inflation within the government’s 2.5±1% target while macroprudential and payment-system policy stay geared to growth. The hold followed a 25 bp increase in June to 5.75%, after a 50 bp rise in May to 5.25% from 4.75% held since September 2025. Bank Indonesia said it will optimize offshore Non-Deliverable Forward, spot and Domestic Non-Deliverable Forward intervention, manage money-market rate structures in line with the policy rate, keep primary money growth above 10%, and expand incentives for foreign portfolio inflows while refining its Macroprudential Liquidity Incentive framework from September. Consumer price inflation rose to 3.34% year on year in June from 3.08% in May, 2026 growth is projected at 4.9%-5.7%, and bank credit growth accelerated to 12.67% in June. Externally, reserves stood at USD145.6 billion at end-June and the rupiah was broadly stable at Rp17,885 per USD on July 21. Bank Indonesia said the renewed US-Iran war in early July disrupted Strait of Hormuz traffic, lifted oil and other commodity prices, and left 2026 global growth weak at 3.0% with global inflation around 4.5%, and it signalled further incentives to attract inflow
Bank Indonesia2026-07-22
Bank Indonesia Holds BI-Rate at 5.75%
Bank Indonesia kept the BI-Rate at 5.75% in July 2026, with the Deposit Facility rate at 4.75% and the Lending Facility rate at 6.50%, saying the hold and a broader package of incentives and market measures are intended to support rupiah stability amid elevated global uncertainty while keeping 2026 and 2027 inflation within the government’s 2.5±1% target. It said it will intensify offshore Non-Deliverable Forward, spot and Domestic Non-Deliverable Forward intervention, manage money-market rates in line with the policy rate, keep primary money growth above 10%, and expand incentives for foreign portfolio inflows while refining its Macroprudential Liquidity Incentive framework from September.