Regulations
Bank Indonesia (BI) has increased its benchmark interest rate by 50 basis points (bps) to stabilize the rupiah, blaming the recent depreciation of the Indonesian currency on external pressure.
A screenshot shows Bank Indonesia (BI) Governor Perry Warjiyo presenting the results of BI's latest Board of Governors Meeting in an online press conference in Jakarta on May 20, 2026. (YouTube/Bank Indonesia YouTube channel)
Bank Indonesia (BI) has increased its benchmark interest rate by 50 basis points (bps) to stabilize the rupiah, blaming the recent depreciation of the Indonesian currency on external pressure. BI Governor Perry Warjiyo announced in a press conference on Wednesday that the decision was taken as “a further step to strengthen the stabilization of the rupiah exchange rate against the impact of heightened global volatility” triggered by the United States-Israeli war on Iran.
He added that the move was also a “preemptive measure” to keep inflation within the government’s target range of 2.5 plus/minus 1 percent in 2026 and 2027.
