Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo said the central bank was reluctant to raise its benchmark interest rate (BI-Rate), but has done so to attract foreign portfolio investment inflows into the country.
On Tuesday, through its weekly Board of Governors Meeting (RDG), BI decided to raise the BI-Rate by 25 basis points (bps) to 5.5 percent.
“Today we raised it again to 5.5 percent. We do not like raising interest rates, but (did so) to attract foreign portfolio investment,” he said during a working meeting with the House of Representatives’ Budget Committee here on Tuesday.
BI recently raised the BI-Rate by 50 bps at its monthly RDG on May 19-20.
The increase marked the first adjustment after the benchmark rate was held at 4.75 percent since September 2025.
Throughout 2025, BI had previously cut the benchmark rate five times, totaling a 125 bps reduction.
BI is scheduled to hold its next monthly RDG on June 17-18.
In addition to interest rate adjustments, Warjiyo outlined other measures aimed at maintaining rupiah exchange rate stability, including continued foreign exchange interventions in both offshore Non-Deliverable Forward (NDF) markets and onshore spot and Domestic Non-Deliverable Forward (DNDF) transactions.
BI also ensures that foreign exchange reserves remain more than sufficient to maintain rupiah exchange rate stability.
Furthermore, BI said it is boosting foreign capital inflows by increasing the interest rate structure of Bank Indonesia Rupiah Securities (SRBI), in coordination with the government so that portfolio investment grows not only in SRBI instruments but also in government bonds (SBN) and the stock market.
In addition, BI has lowered the threshold for cash foreign exchange purchases against the rupiah without underlying documents to US$25,000 per person per month, effective June 2026.
BI is also strengthening supervision of banks and corporations with high US dollar purchasing activity in close coordination with the Financial Services Authority (OJK).
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Translator: Rizka, Kenzu Editor: Azis Kurmala Copyright © ANTARA 2026
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2 reports
Antara NewsState / PublicCenter12 days agoBank Indonesia (BI) raised its benchmark interest rate (BI-Rate) by 25 basis points to 5.5 percent in an effort to attract foreign portfolio investment. Governor Perry Warjiyo stated that while the central bank prefers not to increase interest rates, this move was necessary to stabilize the rupiah exchange rate. The decision follows a previous 50-basis-point increase in May 2025 and marks the first adjustment since September 2025. BI had reduced the rate five times throughout 2025, totaling a 125-basis-point decrease. Additional measures include foreign exchange interventions in NDF and DNDF,
Bias read (Center): The article presents factual information regarding Bank Indonesia's monetary policy decisions without apparent ideological framing or biased language. It reports on economic actions taken by the central bank and includes direct quotes from the governor, providing a balanced overview of the situation
Official sources cited
- government Bank Indonesia (BI)
Antara NewsState / PublicCenter12 days ago Bank Indonesia raises rate to defend rupiahBank Indonesia increased its benchmark interest rate by 25 basis points to 5.50 percent in an effort to stabilize the rupiah, attract foreign capital, and manage inflation. Governor Perry Warjiyo stated that the move was necessary due to unexpected weakening of the rupiah, which he linked to global financial market volatility and strong domestic demand for foreign currency. The central bank also adjusted its deposit and lending facility rates to maintain liquidity.
Bias read (Center): The article presents a factual account of Bank Indonesia's monetary policy decision without overtly favoring any particular political stance. It includes direct quotes from Governor Perry Warjiyo and explains the economic rationale behind the rate hike, providing balanced information without evident
Official sources cited
- government Bank Indonesia
ID