TEMPO.CO, Jakarta - Bank Indonesia (BI) has once again raised the benchmark interest rate (BI Rate) by 25 basis points to 5.5 percent. This decision was made in the Weekly Board of Governors (RDG) meeting held on Tuesday, June 9, 2026.
Throughout the year, Bank Indonesia announces its interest rate policies after holding the monthly Board of Governors meeting in the middle of each month. In the previous May Monthly Board of Governors Meeting, BI raised the interest rate by 50 bps to 5.25 percent.
BI Governor Perry Warjiyo stated that, since the RDG on May 18-19, 2026, the rupiah exchange rate has shown weaker development than expected. "Besides being caused by ongoing global turbulence and high demand for foreign currencies domestically, the weakening is also driven by the outflow of foreign portfolio investments from Indonesia," he said in a written statement on Tuesday, June 9, 2026.
Therefore, Perry said that BI deemed it necessary to take further steps to strengthen the stabilization of the rupiah exchange rate by increasing yields and several other incentives in monetary operations to encourage the inflow of foreign investment. He mentioned that stabilizing the exchange rate is also being pursued to ensure Indonesia's continued external economic resilience and to achieve the inflation targets for 2026 and 2027.
In addition to raising the BI Rate, BI also raised the Rupiah Securities of Bank Indonesia (SRBI) interest rate structure for the 6, 9, and 12-month tenors; provided incentives in the form of a reduction in the hedge swap rate for foreign investors; reopened the repo instrument auction window for 3, 6, 9, and 12-month tenors for the banking sector; and increased the intensity of monetary operations in both Rupiah and foreign currencies.
"In accordance with the law and the practice that has been in place so far, Bank Indonesia holds the Weekly Board of Governors Meeting every Tuesday to evaluate the implementation of the policy mix determined in the Monthly Board of Governors Meeting," said BI Executive Director of the Communication Department, Ramdan Denny Prakoso. In addition to raising the benchmark interest rate, the RDG also decided to raise the deposit facility interest rate by 25 bps to 4.5 percent, and the Lending Facility interest rate by 25 bps to 6.25 percent.
Read: Bank Indonesia Begins Weekly Yield Curve Release to Boost Transparency
Click here to get the latest news updates from Tempo on Google News
Bank Indonesia Begins Weekly Yield Curve Release to Boost Transparency
10 jam lalu
The yield curve published by Bank Indonesia reflects the actual price conditions formed in the secondary market.
Indonesia's Primary Money Growth Slows to 14.2 Percent in May
1 hari lalu
The growth of primary money is driven in part by the increase in commercial bank deposits at Bank Indonesia, which grew by 17.4 percent annually.
Indonesia's Foreign Exchange Reserves Fall US$1.3 Billion as Rupiah Weakens
1 hari lalu
Bank Indonesia reported that the country's foreign exchange reserves at the end of May 2026 were recorded at US$ 144.9 billion or equivalent to Rp 2,630 trillion (at an exchange rate of Rp 18,160 per US dollar). This position decreased by US$ 1.3 billion from US$ 146.2 billion at the end of April.
How a Weaker Rupiah Is Squeezing Indonesian Importers
2 hari lalu
The weakening rupiah, now trading around Rp18,000 per U.S. dollar, is increasing pressure on import-dependent businesses.
Bank Indonesia to Raise Remuneration on Government Funds
3 hari lalu
Bank Indonesia plans to increase the remuneration paid by the central bank to the government. Remuneration is the interest on government fund placement.
Indonesia Shares Stabilization Strategies as Rupiah Slides Past 18,000
3 hari lalu
Bank Indonesia and Ministry of Finance prepare two strategies to maintain the rupiah exchange rate.
How to Save Rupiah and JCI from Further Drops
3 hari lalu
An economist shared insights on how to save rupiah and the Jakarta Composite Index (JCI/IHSG) from weakening further.
5 Measures to Stabilize the Rupiah, According to Analyst
4 hari lalu
Analyst says rupiah stability requires fiscal discipline, healthy financial markets, clear external sector strategy, and stronger policy credibility.
Fact Check: Is Bank Indonesia Deliberately Weakening Rupiah?
4 hari lalu
Fact check - No indication that Bank Indonesia is deliberately weakening the rupiah, as it is mandated to maintain rupiah's stability.
Today's Top 3 News: BI's Action as Rupiah Nears Rp18,000 per USD
4 hari lalu
Here is the list of the top 3 news on Tempo English today.
