Bank Indonesia holds BI-Rate at 5.75%, prioritising currency stability
Key points
- BI kept the BI-Rate at 5.75% at its 22–23 September board meeting.
- The deposit facility (4.75%) and lending facility (6.50%) were also unchanged.
- BI reaffirmed its 2.5% ± 1% target and stepped up measures to attract inflows and deepen FX markets.
Facts
Policy rates: the BI-Rate was held at 5.75%, the deposit facility rate at 4.75% and the lending facility rate at 6.50%. Basis: 23 September 2026. Source: Bank Indonesia (BI) board decision (reported by ANTARA). It was the third consecutive hold (CNN Indonesia). 1
Rationale: consistency with the exchange-rate stabilisation strategy amid strong external pressure, and achieving the 2026–2027 inflation target of 2.5% ± 1%. Governor Destry Damayanti. Same source.
Prices: August CPI inflation was 3.19% year on year (BPS).
Analysis
Regionally, Indonesia's policy rate of 5.75% is 3 pp above Malaysia's OPR of 2.75% (BNM, 3 September) and similar to the Philippines' 5.0% (as reported by the Inquirer). The margin over inflation (an ex-post real policy rate) is about 2.6 pp, positive, which reads as prioritising currency defence over growth.
Implications
Counterpoints and uncertainties
If external pressure eases, BI could turn to cuts within the year. We omit the rupiah exchange rate level because it could not be confirmed against primary sources.
Figures: see definitions
- BI-Rate (policy rate): 5.75% (unchanged; third consecutive hold). Bank Indonesia benchmark policy rate. Indonesia, national. Basis date: 23 Sep 2026. Source: ANTARA: BI-Rate kembali bertahan di level 5,75 persen pada RDG September
Sources
Reports are for information only and are not investment advice. Methodology: sources, verification and definitions