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No. 28/126/DKom  

The Bank Indonesia Board of Governors agreed on 17-18^th June 2026 to raise the BI-Rate by 25 bps to 5.75%, the Deposit Facility (DF) rate by 25 bps to 4.75%, and the Lending Facility (LF) rate by 25 bps to 6.50%. This represents a further measure to strengthen Rupiah exchange rate stabilisation efforts amid persistently elevated global uncertainty, as well as a pre-emptive measure to maintain inflation within the target corridor of 2.5±1% in 2026 and 2027 set by the Government. Meanwhile, macroprudential policy and payment system policy remain directed towards supporting growth (pro-growth). Bank Indonesia continues strengthening accommodative macroprudential policy to support economic growth by increasing lending/financing to the real sector, while maintaining financial system stability. Payment system policy remains directed towards supporting economic activity through broader acceptance of digital payments, strengthening the payment system industry structure, as well as enhancing the reliability and resilience of payment system infrastructure. 

The direction of the monetary, macroprudential and payment system policy mix to strengthen stability, while also supporting sustainable economic growth, is also supported by the following policy measures:

1. Strengthening the effectiveness of monetary policy implementation to stabilise the Rupiah exchange rate and maintain inflation in 2026 and 2027 within the 2.5±1% target range by:
   1. increasing the intensity of foreign exchange intervention to strengthen Rupiah exchange rate stabilisation through Non-Deliverable Forward (NDF) transactions in offshore markets as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market,
   2. maintaining the interest rate structure of Bank Indonesia Rupiah Securities (SRBI) across the 6, 9 and 12-month tenors in line with the BI-Rate decision to continue attracting foreign portfolio investment inflows to domestic financial assets, 
   3. continuing to provide incentives in the form of a 10% reduction in hedging swap rates for non-resident investors to further enhance the attractiveness of foreign investor inflows and compensate for the obligations currently borne by investors, and 
   4. maintaining adequate liquidity in the money market and banking industry by ensuring primary money growth above 10% (double digit), consistent with monetary expansion, including through the reopening of the repurchase agreement (repo) auction window for the 3, 6, 9 and 12-month tenors as Bank Indonesia's main monetary liquidity expansion instrument for the banking industry.
2. Strengthening macroprudential policy effectiveness through:
   1. an increase in the Bank Foreign Funding Ratio (RPLN) from a maximum of 35% to 40% of bank capital, effective from 1^st July 2026. The increase in the RPLN ratio aims to expand banking funding sources, particularly from abroad, to support lending/financing to the economy, while observing prudential principles,
   2. synergy with the Government and other stakeholders to stimulate bank lending/financing through the Indonesian Intermediation Acceleration Program (PINISI), and
   3. publication of the assessment of prime lending rate (PLR) transparency, with a focus on lending rates based on priority sectors in accordance with the scope of Macroprudential Liquidity Incentive Policy (KLM) (Appendix 1);
3. Strengthening the implementation of payment system digitalisation measures in accordance with the Indonesia Payment System Blueprint (BSPI) 2030 to support economic growth and further expand inclusive digital economic and financial activities by:
   1. extending the current credit card policy and National Clearing System (SKNBI) tariff policy until 31^st December 2026, including: (i) minimum payment policy for credit cardholders of 5% of the total billed amount and late payment penalties of 1% of the outstanding balance up to a maximum of Rp100,000, and (ii) National Clearing System fees of Rp1 for banks and up to Rp2,900 for bank customers, and 
   2. expanding digital financial acceptance through the QRIS Jelajah Indonesia 2026 program and expansion of QRIS Cross-Border, as well as further implementation of the Indonesian Digital Innovation Centre (PIDI), covering the Digital Talenta Berdaya dan Berkarya (Digdaya) and Hackathon programs, as well as synergy with the Government through the Capacity Building and Literacy for Accelerating and Expanding Regional Digitalisation Synergy (KATALIS P2DD) and Digdaya program.  
4. Strengthening money market and foreign exchange market deepening policy to advance more efficient and prudent money and foreign exchange markets, thereby attracting foreign investment and bolstering monetary policy effectiveness, including Rupiah exchange rate stabilisation by:
   1. expanding the money market and foreign exchange market ecosystem in terms of products, pricing, participants and infrastructure to support the use of Local Currency Transactions (LCT) with several countries to facilitate trade and investment, 
   2. strengthening prudential principles in the money market and foreign exchange market through a lower threshold for cash purchases of foreign exchange against the Rupiah without underlying transactions to USD10,000 per person per month, effective from 1^st July 2026, and 
   3. strengthening prudential principles in International Transaction Reporting System (ITRS) reporting through adjustments to the threshold for supporting document obligations on outgoing foreign currency transfers abroad from a nominal equivalent of above USD50,000 to above USD25,000, effective from 1^st July 2026.
5. Expanding international cooperation with several central banks in central banking areas, including payment system connectivity and local currency transactions, while facilitating investment and trade promotion in priority sectors in cooperation with relevant institutions.

​Bank Indonesia also continues strengthening policy coordination with the Government, including close synergy between monetary and fiscal policy to mitigate the impact of global uncertainty spurred by the war in the Middle East on the domestic economy, thereby maintaining economic stability and growth. Policy synergy with the Financial System Stability Committee (KSSK) is also strengthened to maintain financial system stability and increase financing for the Government's Asta Cita programs. 

Global uncertainty caused by the war in the Middle East remains high, despite easing slightly after the interim deal struck between the United States (US) and Iran on 14^th June 2026. The war, which began in late February 2026, has disrupted production, distribution and cross-border supply chains, while also lowering the global economic outlook. Global economic growth in 2026 is projected to remain low at 3.0%, accompanied by a build-up of inflationary pressures to around 4.4%. Several central banks have begun raising policy rates in response to the increase in inflation. The US monetary policy rate, the Federal Funds Rate (FFR), is currently maintained at 3,5 - 3.75% and may increase moving forward in line with the outlook for higher US inflation. US Treasury yields remain high, reaching 4.49% for the benchmark 10-year tenor and 4.18% for the 2-year tenor on 17^th June 2026, driven by a widening fiscal deficit. US dollar indexes against advanced economy currencies (DXY) and emerging market currencies (ADXY) remain strong. Consequently, global investor preference for placements in emerging markets (EMs) has not strengthened, with a rebalancing towards safe-haven assets in advanced economies. Moving forward, ongoing negotiations between the US and Iran concerning an agreement to resolve the conflict in the Middle East are expected to remain dynamic, demanding vigilance as well as stronger fiscal and monetary policy responses and synergy to strengthen external resilience, maintain stability and drive domestic economic growth. 

At home, economic growth momentum in Indonesia remains sound, underpinned by domestic demand. Government consumption grew strongly in line with the continued realisation of priority programs and accelerated government spending, particularly disbursements of the 13^th salary for civil servants and social assistance for beneficiary families. Household consumption has been maintained, driven by the impact of accelerated government consumption and robust consumer confidence. Investment has also increased, as reflected in the Purchasing Managers' Index (PMI), which remained in the expansionary zone, primarily supported by building investment related to government projects. Externally, meanwhile, exports must continue to be nurtured to take advantage of high international commodity prices amid the moderating global economic outlook. Moving forward, various government stimulus programs to maintain public purchasing power and the implementation of various priority programs will continue to be optimised to support sources of economic growth from domestic demand. Accordingly, Bank Indonesia continues optimising its policy mix to strengthen stability and support sustainable economic growth, including through stronger accommodative macroprudential policy and payment system policy to foster inclusive digital economic and financial activity. Bank Indonesia forecasts national economic growth in 2026 within the 4.9-5.7% range. 

Indonesia's Balance of Payments (BOP) performance must continue to be strengthened to support external resilience. The positive trade balance in April 2026 narrowed to USD0.1 billion from a USD3.3 billion surplus in March 2026. In terms of the capital and financial account, strengthening the monetary policy response by Bank Indonesia in synergy with fiscal policy to increase yields on domestic financial instruments has successfully attracted foreign capital inflows in the second quarter of 2026, thus recording a net inflow of USD3.9 billion as of 15^th June 2026, after posting net outflows of USD0.8 billion in the first quarter of 2026. Foreign capital inflows were primarily supported by inflows to Bank Indonesia Rupiah Securities (SRBI) and Government Securities (SBN). Indonesia's reserve assets at end-May 2026 remained strong at USD144.9 billion, equivalent to 5.6 months of imports or 5.5 months of imports and servicing government external debt, which is well above the international adequacy standard of around 3 months of imports. Moving forward, Bank Indonesia projects the current account deficit in 2026 to remain healthy and manageable within the 1.3% to 0.5% of GDP range. Stronger policy synergy between the Government and Bank Indonesia will also continue to be pursued to strengthen the capital and financial account, thereby bolstering external resilience and simultaneously strengthening Rupiah exchange rate stability against the global turmoil. 

The Rupiah exchange rate is appreciating, supported by Bank Indonesia's stabilisation policy response. Against the US dollar, the Rupiah was recorded at Rp17,730 on 17^th June 2026, appreciating by 0.76% (ptp) from the level at end-May 2026. This was realised through stronger Bank Indonesia exchange rate stabilisation measures in response to the impact of high global uncertainty and strong domestic corporate demand for foreign exchange for economic activity. Consequently, Bank Indonesia increased the intensity of foreign exchange intervention, both through intervention in offshore NDF markets as well as spot and DNDF transactions in the domestic market. Bank Indonesia raised SRBI rates to attract foreign capital inflows and strengthen Rupiah exchange rate stability. The position of outstanding SRBI instruments on 15^th June 2026 stood at Rp1,021.13 trillion, with non-resident holdings increasing to Rp238.09 trillion (23.32% of total outstanding), thereby further supporting Rupiah exchange rate stability. Bank Indonesia also provides incentives in the form of a 10% reduction in hedging swap rates for non-resident investors to further enhance the attractiveness of foreign investor inflows and compensate for the obligations currently borne by investors. In addition, Bank Indonesia further expanded foreign exchange Monetary Operations (MO) instruments with offshore spot and swap instruments in Chinese renminbi (CNH) against the Rupiah in line with broader use of local currency transactions (LCT) to settle trade and investment transactions. Moving forward, Bank Indonesia is confident that the Rupiah exchange rate will remain stable and trend towards appreciation, supported by Bank Indonesia's firm commitment, attractive yields and Indonesia's promising economic outlook. 

Consumer Price Index (CPI) inflation remained under control despite the increasing impact of global turmoil on domestic prices. CPI inflation in May 2026 was recorded at 3.08% (yoy), up from 2.42% (yoy) in the previous period. This was influenced by core inflation, which increased slightly to 2.59% (yoy), yet remained under control, supported by consistent Bank Indonesia policy to anchor inflation expectations. Administered prices (AP) inflation increased to 2.07% (yoy) in line with price adjustments to Liquefied Petroleum Gas (LPG), non-subsidised fuel and aviation fuel, consistent with higher global energy prices. Volatile food (VF) inflation also increased to 6.24% (yoy), affected by lower supply due to production disruptions caused by inclement weather and the end of the main harvesting season. Moving forward, Bank Indonesia will continue strengthening the monetary policy mix response, including Rupiah exchange rate stabilisation, to mitigate the increase in imported inflation as well as contain inflation within the 2.5±1% target range in 2026 and 2027. Bank Indonesia also continues strengthening synergy with the Government through the Central/Regional Inflation Control Teams (TPIP/TPID) by bolstering implementation of the Inflation Control and Food Prosperity Movement (GPIPS), which includes anticipating the risk of weather disruptions triggered by El Niño on food prices. 

Liquidity in the money market, banking industry and economy remains adequate. Maintaining ample liquidity in the money market and banking industry, Bank Indonesia reopened the repurchase agreement (repo) auction window for the 3, 6, 9 and 12-month tenors to the banking industry. Bank Indonesia has also purchased SBN in 2026, which as of 17^th June 2026 amounted to Rp156.98 trillion, including Rp76.62 trillion in secondary-market purchases. Such measures helped to maintain double-digit primary money growth and supported adequate liquidity in the economy. Base money (M0) in May 2026 grew by 14.8% (yoy), up from 14.1% (yoy) in April 2026. Accordingly, broad money (M2) in April 2026 grew by 9.2% (yoy), continuing the 9.7% (yoy) growth recorded in the previous period. Based on the affecting factors, M2 growth was primarily influenced by Net Claims on Central Government (NCG) and disbursed loans. Moving forward, Bank Indonesia will continue to manage money supply growth in line with maintaining stability and supporting economic growth through policy synergy between Bank Indonesia and the Government. 

Bank Indonesia continues to pursue accommodative macroprudential policy by optimising Macroprudential Liquidity Incentive Policy (KLM) to boost bank lending/financing to priority sectors. As of the first week of June 2026, the KLM incentives received by banks amounted to Rp418.1 trillion, comprising Rp355.6 trillion allocated through the lending channel and Rp62.5 trillion through the interest rate channel. By bank group, the KLM incentives received by state-owned banks totalled Rp209.6 trillion, with Rp169.9 trillion allocated to national private commercial banks, Rp30.8 trillion to regional development banks and Rp7.8 trillion to foreign bank branches. By sector, the incentives were primarily disbursed to priority sectors, namely agriculture, industry, and downstream sectors; services, including the creative economy, construction, real estate and housing; as well as the MSME, cooperatives, inclusive, and sustainable sectors. Moving forward, Bank Indonesia will continue strengthening accommodative macroprudential policy implementation, among others, by strengthening the Macroprudential Intermediation Ratio (RIM), KLM incentives and the Bank Foreign Funding Ratio (RPLN) to continue supporting bank lending/financing. Bank Indonesia will also continue strengthening KLM policy by providing incentives to banks that increase non-credit financing and non-TPF funding, as well as to banks that set lending/financing rates in line with Bank Indonesia policy. Coordination with the Government and KSSK will continue to be strengthened to improve the interest rate structure and promote bank lending/financing growth. 

Bank lending growth remained solid to support further economic growth. Bank lending in May 2026 grew by 11.51% (yoy), accelerating from 9.98% (yoy) in April 2026. By loan type, this was supported by investment loans, working capital loans and consumer loans, which in May 2026 grew by 21.95% (yoy), 8.09% (yoy) and 5.89% (yoy), respectively. Bank Indonesia projects credit growth in 2026 to remain within the 8-12% range. This outlook is supported by the still sizeable undisbursed loan facilities totalling Rp2,576 trillion, equivalent to 22.41% of available credit lines, as well as adequate bank financing capacity, as reflected in the Liquid Assets to Third-Party Funds (LA/TPF) ratio of 24.74% and persistently high TPF growth of 13.47% (yoy) in May 2026. In addition, developments in bank interest rates are also expected to support the credit outlook, with lending rates recorded at 8.72% and 1-month term deposit rates at 4.26% in May 2026. 

Banking sector resilience remains solid, thereby mitigating the risks from the war in the Middle East. This is indicated by ample banking liquidity, persistently high capital capacity and low credit risk. The Capital Adequacy Ratio (CAR) of the banking industry in April 2026 was recorded high at 23.97%, indicating strong capacity to absorb risk and support credit growth. As an aggregate, Non-Performing Loan (NPL) ratios in the banking industry remained low at 2.17% (gross) and 0.84% (net) in April 2026. The results of Bank Indonesia's stress tests indicate that banking resilience remains solid in the face of various risks, including the potential spillover effects from a continuation of the war in the Middle East, supported by maintained corporate repayment capacity and profitability. Bank Indonesia continues strengthening macroprudential policy and policy synergy with KSSK to help maintain financial system stability. 

The growth of digital economic and financial transactions remained high in May 2026, supported by secure, seamless and reliable payment systems. The volume of digital payment transactions^[1] reached 5.22 billion in May 2026, growing 28.14% (yoy), supported by broader acceptance of digital payments. Transaction volumes through mobile and internet applications grew by 26.16% (yoy) and 15.51% (yoy), respectively, including QRIS transactions, which continued to post strong growth of 95.10% (yoy). Positive performance was supported by increasing numbers of users and merchants. On the infrastructure side, retail transaction volumes processed through BI-FAST reached 518 million transactions, growing 31.63% (yoy), with a value of Rp1,265 trillion in May 2026. Meanwhile, the volume of large-value transactions processed through BI-RTGS was recorded at 0.78 million transactions, growing 1.98% (yoy), with BI-RTGS transaction value growing 8.08% (yoy) to Rp15,618 trillion in May 2026. In terms of Rupiah currency management, currency in circulation grew by 15.80% (yoy) to reach Rp1,324 trillion in May 2026. 

Payment system stability was preserved, supported by stable infrastructure and a sound industry structure. Stable infrastructure is reflected in the seamless and reliable operation of the Bank Indonesia Payment System (SPBI) and industry payment systems, as well as adequate supply of currency in sufficient quantity and quality. A sound industry structure is reflected by continuously strengthening interconnection among payment system participants, accompanied by a growing digital economy and finance ecosystem. Moving forward, Bank Indonesia will continue strengthening the payment system industry structure, particularly risk management and the reliability of industry participants' technology infrastructure, in accordance with the implementation of Bank Indonesia Regulation No. 10 of 2025 on Payment System Industry Regulation (PBI PISP). Bank Indonesia will also continue safeguarding the security and reliability of SPBI infrastructure, both retail and wholesale, as well as industry payment system infrastructure. Moreover, Bank Indonesia will also continue maintaining the availability of Rupiah currency in sufficient quantity and fit for circulation throughout the territory of the Republic of Indonesia, including frontier, outermost and remote (3T) areas.

Jakarta, 18^th June 2026
Communication Department
Ramdan Denny Prakoso
Executive Director

^[1] Digital payments consist of transactions through mobile and internet applications.

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