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No. 28/193/DKom 

The Bank Indonesia Board of Governors Meeting on 22-23^rd September 2026 decided to hold the BI-Rate at 5.75%, while maintaining the Deposit Facility rate at 4.75% and Lending Facility rate at 6.50%. This decision remains consistent with the strategy to stabilise the Rupiah exchange rate amid persistently strong external headwinds, maintain inflation within the 2.5±1% target range in 2026 and 2027, and support sustainable economic growth. Bank Indonesia continues strengthening policy incentives to attract foreign capital inflows and maintain Rupiah exchange rate stability, while accelerating money market and foreign exchange market deepening. Meanwhile, macroprudential policy and payment system policy remain oriented towards supporting economic growth. Bank Indonesia continues strengthening accommodative macroprudential policy to increase lending/financing to the real sector, while maintaining financial system stability. Payment system policy also remains directed towards supporting economic activity through broader acceptance of digital payments, strengthening the structure of the payment system industry, 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 supporting sustainable economic growth, is further bolstered through the following policy measures:

1. Strengthening the effective implementation of monetary policy to stabilise the Rupiah exchange rate, maintain inflation within the 2.5±1% target range in 2026 and 2027, and preserve adequate Rupiah liquidity by:
   1. optimising the foreign exchange intervention strategy to strengthen Rupiah exchange rate stabilisation efforts through Non-Deliverable Forward (NDF) transactions in offshore markets as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market, and
   2. managing the interest rate structure in the money market in line with the BI-Rate and the rates of pro-market monetary operations instruments, accompanied by a stronger pro-market monetary operations strategy,
2. Strengthening the effectiveness of Rupiah exchange rate stabilisation efforts, while supporting adequate Rupiah liquidity by:
   1. increasing incentives for Conventional Swap Buy Hedging to Bank Indonesia for underlying foreign funding transactions, including portfolio inflows, foreign loans by banks and foreign direct investment, by increasing the premium reduction from 12.5% for all tenors to 15% for 3-month tenors, 20% for 6-month tenors and 25% for 12-month tenors^[1], 
   2. increasing incentives for Domestic Non-Deliverable Forward (DNDF) hedging instruments with Bank Indonesia for underlying foreign funding transactions, including portfolio inflows, foreign loans by banks and foreign direct investment, by increasing the premium reduction from 15% to 25% for 6-month tenors and to 30% for 12-month tenors, 
   3. continuing to provide incentives for Local Currency Transactions (LCT) with partner countries to diversify foreign exchange transactions through: (a) a 10% increase in the premium for Swap Buy Hedging (Swap Sell Hedging to Bank Indonesia), and (b) a 10% reduction in the premium for DNDF Sell Hedging transactions^[2],
3. Strengthening the effective implementation of accommodative macroprudential policy to foster lending/financing growth in pursuit of economic growth, while maintaining financial system stability by:
   1. continuing preparations to implement the strengthened Macroprudential Inclusive Financing Ratio (RPIM) Policy to stimulate bank lending/financing to inclusive and sustainable sectors, effective from 1^st October 2026, and 
   2. continuing synergy with the Government and other stakeholders to promote bank lending/financing through the Indonesia Intermediation Acceleration Program (PINISI),
4. Accelerating digital payment acceptance through collaboration between the Coordinating Ministry for Economic Affairs, Bank Indonesia, the Financial Services Authority (OJK) and industry associations in hosting the Indonesia Digital Economy and Finance Festival and Indonesia Fintech Summit and Expo (FEKDI and IFSE) 2026 on 24-26 September 2026. The event marks the realisation of synergy among various programs and initiatives, namely:
   1. National Coordination Meeting on Inflation Control (PI) and the Acceleration and Expansion of Regional Digitalisation (P2DD), 
   2. National Digital Transformation Festival, marking a milestone in synergy among various initiatives to expand cross-cutting digitalisation across government ministries/agencies, 
   3. inauguration of expanded QRIS Cross-Border cooperation with central banks in partner countries, and 
   4. initiation of the Indonesia Travel Pack, as well as
5. Strengthening and expanding international cooperation in central banking, including payment system connectivity and local currency transactions, alongside the addition of Singapore as a new LCT partner in August 2026. 
   

Bank Indonesia continues strengthening policy coordination with the Government, Financial System Stability Committee (KSSK) and other stakeholders to maintain economic stability, while supporting sustainable economic growth. 

The global economic outlook remains subdued amid persistently high financial market uncertainty. Renewed tensions in the Middle East has pushed oil prices higher, briefly touching USD132 per barrel before retreating below USD100 per barrel on 22^nd September 2026. Prices of various global commodities have also increased. Global economic growth in 2026 is projected to remain weak at around 3.0%, accompanied by a build-up of inflationary pressures to around 4.6%. Global monetary policy has tightened, including a hike in the US monetary policy rate, the Federal Funds Rate (FFR), to 3.75-4.00% in September 2026, with the likelihood of further increases remaining high. US Treasury yields also increased in line with expectations of further FFR hikes and the massive US Government fiscal deficit. Global investor preference for portfolio investment in emerging markets remains subdued, contributing to the continued strength of the US dollar against currencies of advanced and emerging economies. Such developments demand a stronger policy response and closer fiscal-monetary policy synergy to bolster external resilience, maintain stability and reinforce domestic economic growth. 

Indonesia's economic growth remains solid and needs to be further supported by optimising various sources of economic growth. Recent developments indicate that household consumption remains resilient, supported by substantial Government fiscal stimuli as well as improving consumer confidence and income expectations. Investment also maintained solid growth, particularly supported by Government investment, while the contribution of private investment needs to be strengthened further. On the external side, non-oil and gas export performance improved in line with stronger demand from several countries, although various measures must continue to be strengthened to optimise the impact of higher export commodity prices. Moving forward, economic growth is projected to remain solid, supported by implementation of various Government stimulus programs, improving economic confidence and the optimisation of various sources of economic growth. Bank Indonesia continues strengthening its monetary, macroprudential and payment system policy mix in close synergy with Government policies to maintain stability in pursuit of stronger and more resilient economic growth. Accordingly, Bank Indonesia projects national economic growth to remain within the 4.9-5.7% range in 2026. 

Indonesia's Balance of Payments (BOP) performance must continue to be strengthened to support external resilience amid heightened global uncertainty. The trade balance in July 2026 recorded a USD0.12 billion surplus, after posting a USD0.45 billion deficit the month earlier. Meanwhile, foreign portfolio investment in the third quarter of 2026 (as of 21^st September 2026) recorded net inflows of USD0.4 billion, supported by Government global bond issuances as well as inflows to Government Securities (SBN). The position of Indonesia's foreign reserves remained solid at USD146.5 billion at the end of August 2026, equivalent to 5.4 months of imports or 5.3 months of imports and servicing government external debt, which is well above the international adequacy standard of approximately three (3) months of imports. Moving forward, policy synergy between the Government and Bank Indonesia will continue to be strengthened to bolster external resilience amid global volatility. 

Bank Indonesia continues to strengthen Rupiah exchange rate stabilisation policy amid persistently high global financial market uncertainty. Bank Indonesia is optimising the full range of monetary instruments, including by expanding policy incentives to increase foreign portfolio investment inflows, strengthening Rupiah exchange rate stability as well as accelerating money market and foreign exchange market deepening. To that end, Bank Indonesia has expanded the underlying foreign funding transactions eligible for premium reduction incentives for Hedging Sell Swaps (Hedging Buy Swaps with Bank Indonesia) and DNDF, from previously covering only portfolio inflows to also include foreign loans by banks and foreign direct investment. Consequently, the Rupiah appreciated from August through mid-September 2026, despite recently coming under pressure due to heightened global uncertainty. The Rupiah was recorded at Rp17,855 per US dollar on 22^nd September 2026, depreciating slightly by 0.78% (ptp) compared with the level at the end of August 2026. Moving forward, Bank Indonesia expects the Rupiah to remain stable, supported by Bank Indonesia's firm commitment, attractive yields, inflation maintained within the target corridor and the promising domestic economic outlook. Furthermore, Bank Indonesia will continue strengthening various strategies by optimising the full range of monetary instruments to maintain Rupiah exchange rate stability. 

Consumer Price Index (CPI) inflation remained within the target corridor. CPI inflation in August 2026 was recorded at 3.19% (yoy), up from 2.88% (yoy) in the previous period. The increase in CPI inflation was primarily influenced by higher volatile food (VF) inflation, which rose to 4.06% (yoy) on the back of higher prices of purebred chicken meat, bird's eye chillis and rice. Meanwhile, core inflation was still contained at 2.92% (yoy), supported by consistent Bank Indonesia policies. Administered prices (AP) inflation moderated to 3.32% (yoy) following adjustments to aviation fuel and non-subsidised Pertamax and Pertamax Turbo fuel prices. Moving forward, Bank Indonesia will continue strengthening its monetary policy mix response, including Rupiah exchange rate stabilisation, to maintain 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) in implementing the Inflation Control and Food Prosperity Movement (GPIPS) to control food inflation, including measures to anticipate the impact of weather disruptions (El Niño) on food prices. 

Banking intermediation continued to increase, supported by maintained banking resilience. Bank lending grew by 13.65% (yoy) in August 2026, accelerating from 13.58% (yoy) in July 2026. By loan type, developments were supported by investment loans, working capital loans and consumer loans, which grew by 25.11% (yoy), 11.45% (yoy) and 5.07% (yoy), respectively, in August 2026. Such positive developments were supported by the accommodative macroprudential policy stance maintained by Bank Indonesia through optimisation of the Macroprudential Liquidity Incentive Policy (KLM). As of the first week of September 2026, KLM incentives received by banks amounted to Rp461.2 trillion, consisting of Rp338.2 trillion allocated through the KLM financing channel and Rp123.0 trillion through the money market deepening channel (KLM PPU). In addition, lending appetite also remained accommodative, supported by third-party funds (TPF) growth of 10.94% (yoy). Meanwhile, Bank Indonesia projects credit growth to remain within the 8-12% range in 2026. Banking resilience also remained solid and continued to support credit growth, with the Capital Adequacy Ratio (CAR) of the banking industry recorded high at 23.84% in July 2026. As an aggregate, Non-Performing Loan (NPL) ratios in the banking industry remained low at 2.10% (gross) and 0.81% (net) in July 2026. Moreover, the Liquid Assets to Third-Party Funds (LA/TPF) ratio remained stable at 23.04% in August 2026. Moving forward, Bank Indonesia will continue optimising accommodative macroprudential policy to foster lending/financing growth in support of economic growth, while maintaining financial system stability. 

Digital economic and financial transactions continued to grow in August 2026, underpinned by secure, seamless and reliable payment systems as well as stable infrastructure and a sound industry structure. Digital payment^[3] transaction volume reached 6.11 billion transactions in August 2026, growing by 40.36% (yoy), supported by broader acceptance of digital payments. Transaction volumes through internet banking and mobile banking grew by 15.12% (yoy) and 47.08% (yoy), respectively, including QRIS transactions, which continued to enjoy robust growth of 67.22% (yoy), supported by increasing numbers of users and merchants. On the infrastructure side, retail transaction volumes processed through BI-FAST reached 549 million transactions, growing by 37.72% (yoy), with a transaction value of Rp1,346 trillion. Meanwhile, BI-RTGS transaction value reached Rp16,545 trillion, down slightly by 3.64% (yoy), with transaction volume recorded at 0.86 million transactions, down 1.78% (yoy). In terms of Rupiah currency management, currency in circulation grew by 12.88% (yoy) to Rp1,332 trillion. Bank Indonesia also continues maintaining the availability of Rupiah currency in sufficient quantities and fit for circulation throughout the territory of the Republic of Indonesia, including frontier, outermost and remote (3T) areas.

Jakarta, 23^rd September 2026
Communication Department
Ramdan Denny Prakoso
Executive Director​ 

^[1] Initially, applicable to USD and RMB (CNY and CNH).

^[2] Bank Indonesia has implemented LCT cooperation with seven (7) partner countries, namely Japan, South Korea, Malaysia, Singapore, Thailand, China and the United Arab Emirates.

^[3] Digital payments consist of transactions through mobile banking and internet banking, as well as transactions using server-based electronic money.