Regulations
The central bank has lifted the benchmark interest rate three times in short succession to curb the rupiah’s slide.
Bank Indonesia Governor Perry Warjiyo speaks to reporters after a meeting with the House of Representatives budget committee in Jakarta on June 9, 2026. (Antara/Rizka Khaerunnisa)
Bank Indonesia (BI) has increased the benchmark interest rate again to attract more capital inflows and prop up the rupiah. The move is part of a set of measures that include tighter capital controls and higher bond yields.Following the central bank’s monthly two-day policy meeting, BI Governor Perry Warjiyo announced in a press conference on Thursday that the BI Rate was raised by 25 basis points (bps) to 5.75 percent.
The increase was a “pre-emptive” measure to stabilize the rupiah, said Perry, expressing confidence that the currency would “become stronger going forward” and “stabilize toward its fundamental [value]”.
