No. 28/119/DKom 

The Bank Indonesia Board of Governors agreed on 9th June 2026 to increase the BI-Rate by 25 bps to 5.50%, while also raising the Deposit Facility (DF) rate by 25 bps to 4.50% and the Lending Facility (LF) rate by 25 bps to 6.25%. The increase represents a further measure to strengthen Rupiah exchange rate stabilisation against the impact of heightened global turmoil triggered by the war in the Middle East, as well as a pre-emptive measure to maintain inflation within the Government-set target corridor of 2.5±1% in 2026 and 2027. The measure also aims to enhance yields to attract foreign portfolio investment inflows to Indonesia.

In accordance with prevailing laws and longstanding practice, Bank Indonesia convenes a Board of Governors' Weekly Meeting every Tuesday to evaluate the implementation of the policy mix determined at the Monthly Board of Governors' Meeting. In its evaluation since the Monthly Board of Governors' Meeting on 19th–20th May 2026, the Rupiah exchange rate has shown weaker-than-projected developments. The depreciation has been driven not only by continued global turmoil and strong domestic foreign exchange demand, but also by foreign portfolio investment outflows from Indonesia. In this regard, Bank Indonesia believes it necessary to take further measures to strengthen Rupiah exchange rate stabilisation by further enhancing yields and other incentives to attract foreign investment inflows. Such Rupiah exchange rate stabilisation is also being pursued to preserve Indonesia's external economic resilience and to ensure that the 2026 and 2027 inflation targets are achieved.

In addition to raising the BI-Rate to 5.50%, Bank Indonesia is also taking the following measures to strengthen Rupiah exchange rate stabilisation by enhancing yields and other incentives in monetary operations to attract foreign investment inflows:

1. Increasing the interest rate structure of Bank Indonesia Rupiah Securities (SRBI) across all tenors of 6, 9, and 12 months to further enhance yields for incoming foreign portfolio investment. Such increases to the SRBI interest rate structure will be carried out in accordance with market mechanisms to ensure that portfolio investment in Indonesia remains competitive relative to other countries.
2. Providing incentives of lowering cost of hedging in the form swap rates for foreign investors by 10% (ten percent) to further enhance the attractiveness of foreign investment inflows and compensate for the obligations borne by investors. Bank Indonesia currently provides hedging swap facilities for foreign investment inflows channeled through banks in Indonesia, which are then passed on to Bank Indonesia. Meanwhile, the regular FX swap rate will continue to be determined by Bank Indonesia in accordance with prevailing market mechanisms.
3. Reopening the auction window for repurchase agreement (repo) instruments for 3, 6, 9, and 12-month tenors for the banking industry to ensure adequate liquidity in the money market and banking industry, with the objective of maintaining base money (M0) double digit growth (above 10%). This expanded repo facility will serve as the primary instrument for managing monetary liquidity, as opposed to other mechanisms, including the secondary-market purchases of government securities (SBN) that Bank Indonesia has pursued to date.
4. Intensifying monetary operations in both Rupiah and foreign exchange to strengthen Rupiah exchange rate stabilisation. Rupiah monetary operations will be strengthened through the opening of twice-weekly SRBI auctions. Meanwhile, foreign exchange monetary operations will continue to be strengthened by intensifying interventions through spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market, as well as Non-Deliverable Forward (NDF) transactions in offshore markets.
   

Bank Indonesia continues to strengthen coordination between monetary policy and the Government's fiscal policy to reinforce Rupiah exchange rate stabilisation. As conveyed in the joint statement by the Minister of Finance and the Governor of Bank Indonesia on 6th June 2026, fiscal-monetary coordination is intended to be mutually supportive and reinforcing, each within their respective mandates, as a joint effort towards Rupiah exchange rate stabilisation. First, by enhancing the attractiveness and yields for incoming foreign portfolio investment inflows, particularly in SRBI and government securities (SBN), in accordance with market mechanisms. Second, by maintaining adequate liquidity in the money market and banking industry by keeping Government cash holdings at Bank Indonesia, so that monetary and fiscal operations mutually support Rupiah exchange rate stability. The already strong fiscal-monetary coordination will be continuously strengthened and sustained over time to remain mutually supportive and aligned in maintaining macroeconomic stability and promoting economic growth, with the firm conviction that Indonesia's economic fundamentals remain strong and resilient in the face of global turmoil.

Jakarta, 9th June 2026
Communication Department

Ramdan Denny Prakoso
Executive Director