Inp.polri.go.id - Jakarta. Bank Indonesia decided during its Board of Governors meeting on Wednesday (20/5/2026) to raise its benchmark interest rate (BI-Rate) by 50 basis points (bps) to 5.25 percent. 

The central bank also increased the deposit facility rate to 4.25 percent and the lending facility rate to 6 percent, marking a decisive move to cushion the domestic economy from external pressures.

“This increase is a follow-up measure to strengthen the stabilization of the rupiah exchange rate from the impact of high global volatility caused by the war in the Middle East, as well as a pre-emptive step to keep inflation within our target range,” said Bank Indonesia Governor Perry Warjiyo, as reproted by antaranews.com

He added that the 2026 monetary policy remains focused on stability to safeguard Indonesia's external economic resilience. Meanwhile, the Central Bank will maintain loose macroprudential policies and flexible payment systems to support national economic growth through real-sector credit expansion.

(mg/inp/pr/rs)