Inp.polri.go.id - Jakarta. Bank Indonesia Governor Perry Warjiyo said on Wednesday (8/4/2026) that the window for reducing the benchmark interest rate (BI-Rate) is effectively closing due to heightened global instability fueled by the Middle East conflict.

"While we are maintaining the BI-Rate at 4.75 percent, the space for future cuts is becoming increasingly restricted as we must prioritize exchange rate stability," he said during a House of Representatives (DPR) hearing with Commission XI as reported by antaranews.com.

To counter massive capital outflows and stabilize the Rupiah, the central bank is recalibrating its strategy by strengthening the issuance of Bank Indonesia Rupiah Securities (SRBI) to attract foreign inflows. 

The global economic outlook has deteriorated as the US-Iran conflict disrupts supply chains and drives oil prices toward 123 USD per barrel. Bank Indonesia has also intensified its "pro-stability" stance by purchasing Rp 90.05 trillion in government bonds (SBN) from the secondary market to manage the ripple effects of rising US Treasury yields and a strengthening US Dollar.

This shift recorded a significant departure from BI’s previous "dovish" cycle, where rates were cut by 125 bps throughout 2025. With national fiscal pressure mounting from energy costs and currency depreciation, the central bank's focus has moved entirely to defensive measures to safeguard the Indonesian economy from external shocks.

(mg/inp/pr/rs)