Bank Indonesia held the BI-Rate at 5.75% in September, with the Deposit Facility and Lending Facility rates at 4.75% and 6.50%, respectively, citing the need to stabilize the rupiah amid strong external pressure, keep inflation within the 2.5±1% target in 2026 and 2027, and support sustainable growth. Over the past year, it held the BI-Rate at 4.75% through April, raised it by 50 basis points in May and 25 basis points in June, and has since maintained 5.75%. Bank Indonesia will optimize offshore non-deliverable forward and domestic spot and domestic non-deliverable forward intervention, align money-market rates with the policy stance, maintain rupiah liquidity and strengthen incentives for foreign inflows. Consumer price inflation rose to 3.19% year on year in August, while 2026 growth is projected at 4.9%-5.7% and bank credit growth accelerated. The rupiah weakened 0.78% from end-August by September 22, while foreign-exchange reserves remained adequate. Renewed Middle East tensions lifted oil and other commodity prices, while weak global growth, rising inflation, tighter global monetary policy and high financial-market uncertainty constrained emerging-market portfolio flows. Bank Indonesia expects the rupiah to remain stable and said it will continue optimizing all monetary instruments to preserve exchange-rate stability.
2026-09-23Bank Indonesia
Bank Indonesia Holds BI-Rate at 5.75%
Bank Indonesia held the BI-Rate at 5.75%, with the Deposit Facility and Lending Facility rates at 4.75% and 6.50%, respectively, to stabilize the rupiah, maintain inflation within the 2.5±1% target and support growth. It will continue foreign-exchange intervention and optimize monetary instruments to preserve exchange-rate stability amid heightened global uncertainty.